14 November 2023 | Tuesday | News
Image Source |Public Domain
“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,” said Richard Francis, President and CEO of Teva. “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.”
"We are delighted to partner with Teva, to realize the potential of olanzapine LAI and support them as their innovative pipeline continues to come to fruition,” said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. “Long-acting injectable antipsychotics improve compliance and can help prevent hospitalizations. Teva’s olanzapine LAI could be an important new treatment option for patients with schizophrenia.”
Under the agreement, Royalty Pharma will provide Teva up to $100 million to fund ongoing development costs for olanzapine LAI (TEV-‘749), and Royalty Pharma and Teva have a mutual option to increase the total funding amount to $125 million. Upon U.S. 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 3 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.
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