Jazz Pharmaceuticals has acquired US-based clinical-stage biotechnology company Cavion for a total potential consideration of $312.5m (£258.9m).
As per terms of the deal, the former Cavion shareholders have secured an upfront payment of $52.5m (£43.5m). They are also eligible to receive additional payments of around $260m (£215m) based on the achievement of certain clinical and regulatory and commercial milestones.
Cavion president and CEO Andrew Krouse said: “We believe that Jazz Pharmaceuticals’ development and commercial expertise will help realize the value of CX-8998 as a treatment for patients with essential tremor.”
Based in Charlottesville of Virginia and Cambridge of Massachusetts, Cavion is involved in the development of therapies, which help modulate the T-type calcium channel to treat chronic and rare neurological diseases.
The company’s T-type calcium channel modulator portfolio is being developed for the restoration of the brain’s natural rhythms in a variety of neurological diseases such as essential tremor, Parkinson’s disease tremor, neuropathic pain, and epilepsy with absence seizures.
Cavion’s CX-8998 molecule is being assessed in phase 2 randomised and placebo-controlled clinical study in patients with essential tremor.
According to the company, the study showed proof-of-concept and supporting the continued development of CX-8998 as a potential treatment for essential tremor.
CX-8998 is a first-in-class T-type calcium channel modulator was assessed in the T-CALM phase 2 double-blind and placebo-controlled clinical study of 95 patients with essential tremor carried out at 25 sites across the US.
Patients have been randomised to one of two treatment arms, securing either placebo or CX-8998.
Jazz Pharmaceuticals research and development executive vice president Dr Robert Iannone said: “We are excited to continue the development of Cavion’s lead asset, CX-8998, a first-in-class small molecule, for the potential treatment of essential tremor, a prevalent and disabling movement disorder.
“The acquisition of Cavion demonstrates our commitment to further diversify our pipeline and product portfolio with the addition of CX-8998, which has the potential to provide a meaningful treatment option to patients.”
In May 2016, Jazz Pharmaceuticals agreed to acquire oncology-focused biopharmaceutical firm Celator Pharmaceuticals for about $1.5bn (£1.24bn).