Supernus Pharmaceuticals Inc (NASDAQ:SUPN) has entered into an agreement to acquire Biscayne Neurotherapeutics, a privately-held company developing a novel treatment for epilepsy, the pharmaceutical company revealed on Tuesday.

Supernus focuses on developing and commercialising products for the treatment of central nervous system (CNS) diseases. It will pay an initial sum of USD15m for Biscayne, plus further payments including USD73m, contingent on achieving certain development milestones, and up to USD95m contingent upon achieving certain sales milestones.

Additionally, Supernus will pay a low single-digit royalty on net sales to Biscayne and any applicable royalties to third parties for the use of in-licensed intellectual property (IP). The maximum combined royalty Supernus will pay to all parties is approximately 12%.

Through this acquisition Supernus will obtain worldwide rights (excluding certain markets in Asia where rights have been out-licensed) to Biscayne's product candidate which is in Phase I clinical development and has received an Orphan Drug designation from the US Food and Drug Administration (FDA) for the treatment of Dravet Syndrome, a severe form of childhood epilepsy. Supernus will also obtain rights to all the product candidate's underlying and related IP.

The transaction is expected to close in the next few weeks.