Sanofi's Expansion Strategy Persists with USD1.5
billion Licensing Deal for Teva's IBD Drug.
France: Sanofi and Teva
Pharmaceuticals, a subsidiary of Teva Pharmaceutical Industries Ltd. in the
United States, have jointly announced a strategic collaboration to co-develop
and co-commercialize asset TEV'574. TEV'574 is currently in Phase 2b clinical
trials for treating Ulcerative Colitis and Crohn's Disease, both of which are
forms of inflammatory bowel disease.
According to the terms of
this newly formed collaboration agreement, Teva will receive an upfront payment
of €469 million (USD500 million), along with potential additional payments of
up to €940 million (USD1 billion) based on development and launch milestones.
The development costs for this asset will be shared equally by both companies
on a global scale, and they will also share net profits and losses in key
markets. Other markets will be subject to a royalty arrangement. Sanofi will
take the lead in overseeing the development of the Phase 3 program, while Teva
will lead the commercialization efforts in Europe, Israel, and other specified
countries. Sanofi, on the other hand, will lead the commercialization in North
America, Japan, other parts of Asia, and the rest of the world.
The completion of this
transaction is contingent upon meeting customary closing conditions. Initial
results from the program are anticipated to be available in 2024.
According to the Chief
Executive Officer of Sanofi,
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.
According to the President
& Chief Executive Officer of Teva, 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.
According to TechSci Research, TL1A-blocking drugs have
emerged as highly sought-after assets in the pharmaceutical industry as
companies actively seek the next groundbreaking treatment for inflammatory
diseases.
Teva originally pursued the
development of such a drug for asthma, but the company halted its testing
efforts due to disappointing results in a mid-stage study. Subsequently, Teva
redirected its focus by initiating Phase 2 trials for the treatment of
inflammatory bowel disease. This shift in strategy occurred just as Prometheus
and Pfizer gained attention for their promising early data on similar drugs. Although
data from Teva's Phase 2 trial is not anticipated until the following year, the
company has been enthusiastic about the drug's potential to establish itself as
a strong contender in the market. Anti-TL1As are a promising
class of therapies and TEV’574 could emerge as a best-in-class option for
people living with serious gastrointestinal diseases.