Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd., and Royalty Pharma plc, have announced a collaborative effort to advance the clinical research program for Teva's olanzapine LAI (TEV-'749). The partnership involves a funding agreement of up to $125 million, aimed at mitigating program costs for this once-monthly subcutaneous long-acting injection of the atypical antipsychotic olanzapine, currently in Phase 3 for the treatment of schizophrenia. The program holds the potential to become the first long-acting olanzapine with a favorable safety profile.
Transaction Terms
By the agreement, Royalty Pharma will contribute up to $100 million to cover ongoing development expenses for olanzapine LAI (TEV-'749). The agreement includes a mutual option for Royalty Pharma and Teva to raise the total funding amount to $125 million. Upon approval by the U.S. Food and Drug Administration (FDA), Teva will reimburse Royalty Pharma the total funded amount over five years, along with low to mid-single-digit royalties upon commercialization. If Teva decides not to submit a New Drug Application to the FDA following positive Phase 3 study results, Teva will pay an amount equivalent to 125% of the total funded amount. Teva will take the lead in the global development and commercialization of olanzapine LAI (TEV-'749).
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