Teva Enters Funding Agreement With Royalty Pharma To Accelerate Research Program For Olanzapine LAI

(RTTNews) - Teva Pharmaceuticals International GmbH, a unit of Teva Pharmaceutical Industries Ltd. (TEVA) and Royalty Pharma plc (RPRX) announced a collaboration to further accelerate the clinical research program for Teva's olanzapine LAI by entering into a funding agreement of up to $125 million to offset program costs. 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 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. Teva will lead the development and commercialization of olanzapine LAI globally.

Olanzapine LAI is a once-monthly subcutaneous long-acting injection of the atypical antipsychotic olanzapine that is currently in phase 3 for the treatment of schizophrenia.

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