Axsome acquires AstraZeneca ́s epilepsy drug and runs with it

Axsome Therapeutics acquired Baergic Bio, a subsidiary of Avenue Therapeutics, gaining rights to AstraZeneca's former epilepsy drug candidate, now renamed AXS-17.

Why it matters: This expands Axsome’s neuroscience pipeline into epilepsy, a space with high unmet need, and diversifies beyond its current focus areas of depression, migraine, and sleep disorders.

Backstory: Baergic originally licensed the drug (then AZD7325) from AstraZeneca in 2019. The molecule is an oral GABA receptor modulator in Phase 2 development for epilepsy. Axsome has faced recent R&D hurdles, including an FDA refusal to review its fibromyalgia drug.

Big picture: Axsome is aggressively building its CNS pipeline despite recent regulatory setbacks. The deal offers strategic entry into epilepsy, a market underserved by current treatments.

Zoom in: Axsome gains full global rights to develop, manufacture, and commercialize AXS-17 in exchange for $300K upfront and up to $83M in total tied to development, regulatory, and sales milestones. AXS-17 will join the company assets set for targeting depression (approved), migraine, narcolepsy (AXS-12), and fibromyalgia (under re-trial).