Jazz Pharmaceuticals agreed to acquire privately held Actio Biosciences for $820 million upfront with up to $500 million in contingent milestone payments.

The deal gives Jazz control of ABS-1230, a first-in-class small molecule precision therapy designed to inhibit the KCNT1 ion channel, targeting a rare and severe form of pediatric epilepsy for which no FDA-approved treatments currently exist.¹It also extends Jazz's rare epilepsy franchise beyond Epidiolex, adding a late-stage clinical asset aimed at KCNT1+ epilepsy, a rare genetic developmental and epileptic encephalopathy that affects an estimated 2,500 patients in the United States.¹

David Goldstein, Ph.D., chief executive officer, Actio Biosciences, says the company chose Jazz as a partner because of its combination of culture, development capability and commercial reach. "We started Actio with one goal in mind: to bring meaningful therapies to those who need them most. Guided by our expertise in genetics, we set out to leverage a deep understanding of disease biology to develop highly effective targeted therapies for rare diseases with high unmet need. ABS-1230 is that vision personified, and we are thrilled to partner with Jazz on the next leg of the journey to bring this important medicine to patients."

What are the terms of the deal?

Under the merger agreement, Actio Biosciences shareholders are set to receive $820 million upfront and upwards of $500 million tied to future approval and sales milestones.¹ Concurrently with closing, Actio will spin out a separate, privately held company retaining certain management, employees and assets, though not ABS-1230, which stays with Actio and transfers to Jazz.¹

The new entity will focus on genetic rare neurological diseases and will be funded by Actio's existing investors, with Jazz retaining a minority stake and related rights. The pipeline will include ABS-0871, a clinical-stage small molecule TRPV4 inhibitor being developed for Charcot-Marie-Tooth type 2C, along with other early-stage programs.¹

The transaction has been unanimously approved by both companies' boards and is expected to close by the fourth quarter of 2026, subject to customary closing conditions.¹ Jazz is expected to fund the acquisition using cash on hand along with existing financing facilities. Moelis & Company LLC is serving as financial advisor to Jazz, with Hogan Lovells Cadwalader US LLP as legal advisor. J.P. Morgan Securities LLC and Centerview Partners LLC are advising Actio Biosciences on the financial side, with Cooley LLP serving as legal advisor.¹

What is ABS-1230?

ABS-1230 is designed as a potent, selective, orally available small molecule that inhibits the KCNT1 ion channel.² In preclinical studies, it inhibited KCNT1 across all evaluable pathogenic mutations, suggesting the potential to treat the full range of patients with KCNT1-related epilepsy. In an early clinical proof-of-concept trial, children with KCNT1-related epilepsy who received ABS-1230 experienced meaningful seizure reductions.²

The drug has already accumulated a set of regulatory designations from FDA, including Fast Track, Rare Pediatric Disease and Orphan Drug Product status. It has also been accepted into FDA's Rare Disease Evidence Principles (RDEP) program, an initiative intended to speed development of therapies for ultra-rare diseases.¹ The ongoing Phase IB/IIA KYRON trial is designed to serve as the registrational study supporting a future new drug application submission in the U.S.

"The acquisition of ABS-1230 represents a highly strategic expansion of our rare epilepsy portfolio, building upon the global success of Epidiolex and deepening our leadership in rare and severe epilepsies," said Renee Gala, president and chief executive officer, Jazz Pharmaceuticals. "The emerging clinical profile of ABS-1230 is highly encouraging, and we look forward to closing the proposed transaction and collaborating with our new Actio Biosciences colleagues to address an urgent patient need. Together, we are committed to working alongside the epilepsy patient community and regulators to bring this important medicine to children and families, who currently have no treatment options for a devastating disease."

Sources

1. Jazz Pharmaceuticals to Acquire Actio Biosciences, Expanding Rare Epilepsy Portfolio Jazz Pharmaceutical August 10, 2026, https://www.prnewswire.com/news-releases/jazz-pharmaceuticals-to-acquire-actio-biosciences-expanding-rare-epilepsy-portfolio-302847060.html
2. Actio Biosciences Announces First Participant Dosed in Phase 1 Clinical Trial of ABS-1230, a KCNT1 Inhibitor for the Treatment of KCNT1-Related Epilepsy Actio Biosciences September 23, 2025, https://actiobiosciences.com/actio-biosciences-announces-first-participant-dosed-in-phase-1-clinical-trial-of-abs-1230-a-kcnt1-inhibitor-for-the-treatment-of-kcnt1-related-epilepsy/