Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced the acquisition of Cavion, Inc. through a merger with a Jazz subsidiary. Under the terms of the agreement, the former Cavion shareholders receive an upfront payment of $52.5 million and have the potential to receive additional payments of up to $260.0 million upon the achievement of certain clinical, regulatory and commercial milestones, for a total potential consideration of $312.5 million.
Cavion, a clinical-stage biotechnology company and now a wholly-owned subsidiary of Jazz, creates therapies aimed at modulating the T-type calcium channel for the treatment of chronic and rare neurological diseases. Cavion’s lead molecule, CX-8998, has been evaluated in a Phase 2 randomized, placebo-controlled clinical study in patients with essential tremor. The study demonstrated proof-of-concept, supporting continued development of CX-8998 as a potential treatment for essential tremor.
“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,” said Robert Iannone, M.D., M.S.C.E., executive vice president, research and development of Jazz Pharmaceuticals. “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.”
“Jazz shares Cavion’s passion to develop differentiated therapies for patients,” said Andrew Krouse, president and chief executive officer of Cavion, Inc. “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.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Cavion has appointed Fortis Advisors LLC as the shareholder representative. Cavion registered shareholders with questions regarding payment for Cavion stock should contact notices@fortisrep.com.
Advisors
Jazz Pharmaceuticals’ legal advisor for the transaction was Hogan Lovells.
Cavion’s financial advisor for the transaction was MTS Health Partners, L.P., its legal advisor was Cooley LLP and its strategic advisor was Pilot Health Advisors, LLC.
Jazz Pharmaceuticals Conference Call Details
Jazz Pharmaceuticals will host an investor conference call and live audio webcast on Monday, August 12, 2019 at 5:00 p.m. EDT/10:00 p.m. IST to discuss the acquisition. The live webcast may be accessed from the Investors section of Jazz Pharmaceuticals’ website at www.jazzpharmaceuticals.com. Please connect to the website prior to the start of the conference call to ensure adequate time for any software downloads that may be necessary. Investors may participate in the conference call by dialing +1 855 353 7924 in the U.S., or +1 503 343 6056 outside the U.S., and entering passcode 3763956.
A replay of the conference call will be available through August 19, 2019 by dialing +1 855 859 2056 in the U.S., or +1 404 537 3406 outside the U.S., and entering passcode 3763956. An archived version of the webcast will be available for at least one week in the Investors section of Jazz Pharmaceuticals’ website at www.jazzpharmaceuticals.com.
Date: August 19, 2019
Source: Jazz Pharma
