Axsome Therapeutics (NASDAQ: AXSM) acquires epilepsy drug candidate from AstraZeneca

Axsome Therapeutics Inc. (NASDAQ: AXSM) acquired exclusive global rights to AZD7325, an oral epilepsy drug candidate, through a licensing agreement with AstraZeneca AB (AZN). The transaction was completed by Axsome’s acquisition of Baergic Bio Inc., a subsidiary of Avenue Therapeutics Inc. (ATXI).

AZD7325 is a GABA-A receptor positive allosteric modulator that has completed Phase 1 trials and been tested in over 700 patients. The drug demonstrated anti-convulsant effects in preclinical seizure models and showed a favorable safety and tolerability profile in clinical studies, according to the company’s statement.

Axsome plans to begin Phase 2 trial-enabling activities for AZD7325 in 2026 as a potential epilepsy treatment. The company will receive worldwide commercial, development and manufacturing rights to the drug candidate.

Under the acquisition terms, Baergic Bio shareholders will receive $0.3 million upfront and are eligible for development and regulatory milestone payments of $2.5 million for the first indication and $1.5 million for subsequent indications. Additional potential payments include up to $79 million in sales-based milestones and tiered mid-to-high single-digit royalties on global net sales.

AstraZeneca will receive an upfront cash payment in the single-digit millions and is eligible for development milestones, sales-based milestones and tiered royalties on potential global net sales.

The Centers for Disease Control and Prevention reports that epilepsy affects approximately 3.4 million people in the United States, with about 150,000 new cases diagnosed annually. More than one-third of patients do not respond to current treatment options.