Aliso Viejo drug maker Avanir Pharmaceuticals Inc. said Tuesday it is selling its FazaClo schizophrenia treatment for $42 million to Azur Pharma Ltd. of Ireland.
News of the sale sent Avanir’s shares up about 20% in pre-market trading on Tuesday before pulling back at the open. Avanir has a market value of about $115 million.
Avanir is selling FazaClo to shift focus to Zenvia, its drug candidate to treat involuntary emotional expression disorder. It will use $11 million of the sale’s proceeds to pay down debt.
Azur also agreed to pay Avanir up to another $10 million if FazaClo meets certain sales goals.
Avanir has seen costly regulatory setbacks with Zenvia, including a regulatory request for more data in October.
