Teva To Get Up To $1.5 Bln In Deal With Sanofi To Co-develop Inflammatory Bowel Disease Treatment

(RTTNews) - French drug major Sanofi S.A. (SNYNF, SNY) and Teva Pharmaceuticals, a U.S. subsidiary of Teva Pharmaceutical Industries Ltd. (TEVA), announced Wednesday a collaboration to co-develop and co-commercialize asset TEV '574, an inflammatory bowel disease treatment.

Under the deal terms, Teva will receive an upfront payment of 469 million euros or $500 million, and up to 940 million euros or $1 billion in development and launch milestones.

Asset TEV '574 is currently in Phase 2b clinical trials for the treatment of Ulcerative Colitis and Crohn's Disease, two types of inflammatory bowel disease.

In the collaboration, 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.

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

The companies said the transaction will become effective after customary closing conditions are met. Initial program results are expected to be available in 2024.

Paul HudsonChief Executive Officer, Sanofi, said, "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."

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