Jazz bets $42.5M on Saniona’s next-gen epilepsy drug to avoid Potiga’s pitfalls

Jazz Pharmaceuticals paid $42.5M upfront for global rights to Saniona’s preclinical epilepsy candidate SAN2355, with milestones potentially exceeding $1B.

Why it matters: The deal strengthens Jazz’s epilepsy portfolio beyond Epidiolex, while addressing safety issues that doomed GSK’s Potiga offering hope for a safer potassium channel opener.

Backstory:

• GSK’s Potiga, once a promising drug, was pulled in 2017 after side effects like skin and retinal discoloration and urinary retention.

• Xenon Pharma is in phase 3 with a rival Kv7 potassium channel opener, but Saniona designed SAN2355 to selectively target Kv7.2/Kv7.3 while avoiding Kv7.4/7.5, aiming to reduce urinary and CNS side effects.

• Saniona is building on the success of its previous $28M deal from Acadia for its tremor drug SAN711.

Big picture: Jazz is diversifying its neurology pipeline as Epidiolex nears blockbuster status. For Saniona, the deal validates its ion channel expertise and marks its second licensing success in under a year.

What’s next: Jazz will pay $7.5M at phase 1 initiation, part of $192.5M in R&D milestones with commercial milestones that could add up to $800M. Great expectations are already set for SAN2355, which is already in GMP manufacturing and tox studies. If SAN2355 lives up to its design, it could reset the potassium channel opener class and give Jazz a new growth driver.