Frazier's Juggling Act

Frazier Healthcare has known for more than a year that Johnson & Johnson (NYSE:JNJ) wanted to spin out the Ionsys fentanyl transdermal patch system from its Alza Corp. subsidiary. Now, the VC has found a home for the asset via a three-way deal involving itself, portfolio company Cadence Pharmaceuticals Inc. (NASDAQ:CADX) and a newco to hold the Ionsys assets.

Frazier's James Topper told Ebb & Flow that the firm originally showed Ionsys to Cadence, which in-licenses, develops and commercializes candidates for use in hospitals...