Avanir Pharmaceuticals

In 1988, a company named Lidak Pharmaceuticals was founded in Southern California with a focus on developing new medical treatments. A decade later, in 1998, it became Avanir Pharmaceuticals, sharpening its focus to central nervous system (CNS) disorders. The company's early work led to its first commercialized product, Abreva, the over-the-counter cold sore treatment, which was licensed to GlaxoSmithKline. Avanir's key breakthrough came from developing a treatment for a little-known neurological condition called Pseudobulbar Affect, or PBA, which causes uncontrollable laughing or crying. This led to the creation of its flagship product, Nuedexta. After securing FDA approval, Avanir launched Nuedexta in the U.S. in 2011, establishing a strong commercial presence in the neurology space. The success of Nuedexta, which accounted for nearly all of the company's revenue, did not go unnoticed. In December 2014, the Japanese firm Otsuka Pharmaceutical announced it would acquire Avanir for approximately $3.5 billion. The deal combined Otsuka's experience in mental health with Avanir's specialized expertise in neurological diseases. Following the acquisition in 2015, Avanir continued to operate as an independent subsidiary, focusing on its pipeline for conditions like Alzheimer's and Parkinson's, before being fully integrated into Otsuka's U.S. business in 2023.