Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and Royalty Pharma plc (Nasdaq: RPRX), announced today a collaboration to accelerate the clinical research program for Teva’s olanzapine LAI (TEV-‘749) antipsychotic drug. The collaboration includes a funding agreement of up to $125 million to offset program costs.
Olanzapine LAI is a once-monthly subcutaneous long-acting injection of the atypical antipsychotic olanzapine that is currently in Phase III trials for the treatment of schizophrenia and has the potential to be the first long-acting olanzapine with a favorable safety profile.
Teva president and CEO Richard Francis said, "Since launching Teva’s Pivot to Growth strategy in May 2023, we have been working on novel and expedited ways to both continue to invest in our robust innovative pipeline while supporting the growth of our in-line businesses. We are excited to collaborate with Royalty Pharma, a leading funder of innovation with a strong track record, experience, and reputation. This funding agreement enables us to continue to accelerate the development of olanzapine LAI (TEV-‘749), a critical program for us, without impacting resources dedicated to our innovative and generic medicines."
Under the agreement, Royalty Pharma will provide Teva up to $100 million to fund ongoing development costs for olanzapine LAI and Royalty Pharma and Teva have a mutual option to increase the total funding amount to $125 million. Upon US Food and Drug Administration (FDA) approval, Teva will pay Royalty Pharma the total amount funded over five years, as well as low to mid-single digit royalties upon commercialization. If Teva chooses not to file a New Drug Application with the FDA following positive Phase III study results, then Teva will pay an amount equal to 125% of the total amount funded. Teva will lead the development and commercialization of olanzapine LAI (TEV-‘749) globally.
Teva leads the clinical development and regulatory process and is responsible for commercialization of these products.
Published by Globes, Israel business news - en.globes.co.il - on November 13, 2023.
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