Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has licensed Adasuve for the acute treatment of agitation associated with schizophrenia or bipolar I disorder in adults from Alexza Pharmaceuticals Inc. (Nasdaq: ALXA) for up to $235 million before royalties. Teva will be the exclusive licensee of the drug in the US.
Teva will be exclusively responsible for all US commercial and clinical activities for Adasuve, including US post-approval clinical studies. It also acquired the rights to conduct additional clinical trials of the drug for potential new indications in neurological disorders. Alexza will be responsible for manufacturing and supplying the drug to Teva for commercial sales and clinical trials.
Teva will pay Alexza an upfront cash payment of $40 million and will make up to $195 million in additional milestone payments, based upon successful completion of the Adasuve post-approval studies in the US and achieving net sales targets. Teva will also make tiered, royalty payments based on the drug's net commercial sales.
Teva will also lend Alexza up to $25 million to support its Adasuve activities. Teva may convert all or part of the convertible note, at maturity, or the outstanding amount into Alexza shares.
“Approximately four to five million patients with bipolar I disorder or schizophrenia in the US experience and seek treatment for agitation episodes,” said Teva North America Specialty Medicines president Larry Downey. “This agreement reflects our business development strategy to pursue opportunities in our core therapeutic areas where we can apply our expertise and experience to enhance treatment options for patients."
Alexza president and CEO Thomas King said, “Teva brings an established commercial presence in hospital and psychiatric markets. Adasuve is approved to address agitation episodes in the hospital-setting, providing a fast-acting, non-coercive treatment option to patients with schizophrenia and bipolar I disorder."
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2013
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