Axsome Therapeutics announced that it has acquired exclusive global rights to AZD7325, a selective GABA‑A α2,3 positive allosteric modulator, from Baergic Bio, a subsidiary of Avenue Therapeutics. The deal includes a $0.3 million upfront payment and milestone payments that could total up to $79 million, with tiered mid‑to‑high single‑digit royalties on global net sales.
AZD7325 has completed Phase 1 studies in more than 700 patients, demonstrating a favorable safety profile and anti‑convulsant activity in preclinical seizure models. The company plans to initiate Phase 2 trial‑enabling activities in 2026, positioning the asset as a potential new revenue stream that complements its approved products Auvelity, Sunosi, and Symbravo.
Axsome’s Q3 2025 financial results provide context for the acquisition. Revenue rose 63% to $171 million, driven by a 69% increase in Auvelity sales to $136.1 million and a 35% rise in Sunosi revenue to $32.8 million. Net loss narrowed to $47.2 million from $64.6 million in Q3 2024, reflecting disciplined cost management amid expanding product sales.
The acquisition aligns with Axsome’s strategy to deepen its CNS pipeline and address unmet needs in epilepsy, a market with an estimated 3.4 million U.S. patients. By adding a molecule with a differentiated mechanism of action, the company expands its early‑stage portfolio and creates a potential new therapeutic option that could generate significant upside if AZD7325 progresses to market.
CEO Herriot Tabuteau emphasized the strategic fit, stating, “This transaction adds AZD7325, an earlier‑stage molecule with a differentiated mechanism of action, to our leading late‑stage CNS portfolio. We are excited to deepen our research pipeline in a complementary way and extend our clinical efforts into epilepsy, an area where there is an urgent need for innovative new treatment options for patients.” The company expects Phase 2 development to begin in 2026, with the potential for milestone payments and royalties that could enhance long‑term revenue streams.
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