Jazz Pharmaceuticals to acquire Actio Biosciences in US$1.32B rare epilepsy deal

USA—Jazz Pharmaceuticals has agreed to acquire Actio Biosciences in a transaction valued at up to US$1.32 billion, comprising an upfront payment of US$820 million and as much as US$500 million in milestone-based contingent payments.

The deal, which has received unanimous approval from the boards of both companies, is expected to close in the fourth quarter (Q4) of 2026, subject to customary closing conditions.

Jazz Pharmaceuticals will finance the acquisition through a combination of cash reserves and existing financing facilities.

The company said the transaction strengthens its position in rare neurological disorders by adding a promising investigational therapy to its growing epilepsy portfolio.

ABS-1230 targets a rare form of genetic epilepsy

The acquisition centres on ABS-1230, Actio Biosciences’ lead clinical candidate.

The investigational small-molecule therapy inhibits the potassium sodium-activated channel subfamily T member 1 (KCNT1) ion channel and is being developed to treat KCNT1+ epilepsy, a rare inherited developmental and epileptic encephalopathy.

The condition usually appears during infancy and is characterised by frequent, treatment-resistant seizures alongside severe developmental impairment.

Many affected children fail to achieve basic developmental milestones, while some cases prove fatal during childhood.

Patients whose symptoms emerge later in life often experience disruptive nocturnal seizures, as well as psychiatric and cognitive complications.

Despite the severity of the disease, the US Food and Drug Administration (FDA) has not approved any therapies specifically for KCNT1+ epilepsy, leaving patients with limited treatment options.

Clinical development and regulatory progress

ABS-1230 is currently being evaluated in the ongoing Phase Ib/IIa KYRON trial, which is designed to support a future US new drug application as a potential registrational study.

The investigational therapy has already received several regulatory incentives from the FDA, including Fast Track, Rare Pediatric Disease, and Orphan Drug designations.

In addition, the programme has been accepted into the FDA’s Rare Disease Evidence Principles initiative, reflecting its potential to address a significant unmet medical need.

Strategic expansion for Jazz Pharmaceuticals

As part of the transaction, Actio Biosciences will establish a new privately held company dedicated to developing treatments for genetic rare neurological diseases.

The new entity will retain selected employees and assets, excluding ABS-1230, while Jazz Pharmaceuticals will hold a minority equity stake in the business.

Jazz Pharmaceuticals President and Chief Executive Officer Renee Gala said the acquisition represents a strategic expansion of the company’s rare epilepsy portfolio, building on the commercial success of Epidiolex.

She added that the emerging clinical data for ABS-1230 have been encouraging and expressed confidence that, once the acquisition is completed, Jazz will work closely with former Actio Biosciences employees to accelerate development of the therapy for patients with urgent unmet medical needs.

Moelis & Company acted as financial adviser to Jazz Pharmaceuticals, while Hogan Lovells and Cadwalader served as legal advisers.

Actio Biosciences received financial advice from J.P. Morgan Securities and Centerview Partners, with Cooley acting as legal counsel.