Teva Announces Closing Of Collaboration Deal With Sanofi To Deliver IBD Treatment

(RTTNews) - Teva Pharmaceutical Industries Limited (TEVA) on Thursday announced the closure of its collaboration deal with Sanofi to co-develop and co-commercialize TEV '574, an asset currently undergoing Phase 2b clinical trials for the treatment of ulcerative colitis and Crohn's disease, two debilitating types of inflammatory bowel disease (IBD).

As previously announced on October 4th, 2023, under the terms of the agreement Teva will receive an upfront payment of $500 million shortly after closing, and up to $1 billion in development and launch milestones.

Both companies will share the development costs equally and net profits and losses in major markets, with other markets subject to a royalty arrangement.

Sanofi will lead the development of the Phase 3 program, and will lead commercialization in North America, Japan, other parts of Asia, and the rest of the world, excluding Europe, Israel, and specified other countries, where Teva will be leading the commercialization of the product.

The initial results of the program are expected to be available in 2024.