By Steven Scheer
JERUSALEM (Reuters) – Teva Pharmaceutical Industries said on Wednesday it will collaborate with French drugmaker Sanofi to co-develop its treatment for ulcerative colitis and Crohn’s disease that it expects to ultimately be a blockbuster drug.
Sanofi, a leader in immunology, will invest $1.5 billion in the development of Teva’s irritable bowel syndrome (IBD) drug anti-TL1A, which is still in clinical 2 trials with interim results not expected until the second half of 2024.
Clinical 3 trials are not expected to begin until 2025 and Teva CEO Richard Francis said the best case scenario for the drug’s commercial launch would be around 2028.
“The fact that they’ve done their due diligence on our anti-TL1A asset … and to put up $1.5 billion, as well as allow Teva to retain 50% of the worldwide economics once it’s launched, I think shows that they believe in the asset,” Francis told Reuters.
Under the terms of the deal, Teva will receive an upfront payment of $500 million in cash once the transaction closes, which is expected by the end of 2023, and up to $1 billion in development and launch milestones.
Both companies 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 clinical trials, Teva said.
Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi will lead commercialization in North America, Japan, other parts of Asia and the rest of the world.
Francis estimated the IBD market at nearly $30 billion and said many patients do not respond to current treatments. As such, “we believe it will be a multi-billion-dollar asset. We will know that better as we get closer to market. Right now, we believe it is the best TL1A in development,” he said. ($1 = 0.9555 euros)
(Reporting by Steven Scheer; Editing by Sharon Singleton and Alex Richardson)
