Axsome Therapeutics Eyes Baergic Bio: Is This the Next Big CNS Breakthrough?

Axsome Therapeutics continues to expand its presence in high-impact psychiatric and neurological indications. With three marketed products—AUVELITY, SUNOSI, and SYMBRAVO—and a growing late-stage pipeline, Axsome is aggressively targeting multiple growth levers. Recent developments signal another strategic move: the acquisition of Avenue Therapeutics’ majority-owned subsidiary Baergic Bio. This deal grants Axsome global rights to BAER-101—now rebranded AXS-17—a GABAA α2,3 subtype-selective positive allosteric modulator (PAM) being developed for epilepsy. Axsome will obtain full development, manufacturing, and commercialization rights to AXS-17, aligning with its broader R&D and commercial strategy. The deal structure includes a $0.3 million upfront payment, up to $2.5 million in regulatory milestones, $79 million in commercial sales milestones, and tiered mid-to-high single-digit royalties, with Avenue entitled to ~74% of all payments. This acquisition could offer strong synergies across Axsome’s neuroscience focus and infrastructure. Below are four key drivers that highlight the potential benefits Axsome Therapeutics could derive from this strategic transaction.