Israeli drug developer Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and French pharmaceutical company Sanofi (Nasdaq: SNY; Euronext: SAN) have today announced a collaboration to develop and commercialize TEV 574, currently in Phase 2b clinical trials, for the treatment of ulcerative colitis and Crohn's Disease, two types of inflammatory bowel disease.
Under the terms of the collaboration agreement, Teva will receive an upfront payment of $500 million and up to $1 billion in development and launch milestones. Each company will equally share the development costs globally and net profits and losses in major markets, with other markets subject to a royalty arrangement and Sanofi will lead the development of the Phase 3 program.
Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi will lead commercialization in North America, Japan, other parts of Asia and the rest of the world. The deal will become effective after customary closing conditions are met. Initial program results are expected to be available in 2024.
An estimated 10 million people worldwide live with inflammatory bowel disease.
Teva president and CEO Richard Francis said, "This is a new era for Teva, and our robust, innovative pipeline is key to our Pivot to Growth strategy. This collaboration further validates the great science that Teva has to offer with our internally developed anti-TL1A. We are honored to partner with Sanofi to bring their proven capabilities, leadership, and success in the immunology and gastroenterology space together with our capabilities to optimize development and global launches."
Sanofi CEO Paul Hudson added, "Anti-TL1As are a promising class of therapies, and we believe that TEV ‘574 could emerge as a best-in-class option for people living with serious gastrointestinal diseases. This collaboration strengthens our commitment to advancing innovative treatment options for inflammatory conditions with a high unmet need and bolsters our goal to be an industry leader in immunology."
Published by Globes, Israel business news - en.globes.co.il - on October 4, 2023.
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