Teva Pharmaceutical Industries has signed a definitive agreement to acquire Labrys Biologics, a development stage biotechnology company focused on treatments for chronic and episodic migraines.

Under the terms of the agreement, Labrys Biologics will receive an upfront payment of $200m from Teva and up to $625m in contingent payments upon achievement of certain pre-launch milestones.

Closing of the deal is subject to antitrust approval and satisfaction of other conditions.

"LBR-101 represents a much-needed option for the management of this truly debilitating condition."

As Teva aims to become a global leader in pain care by 2020, Labrys’s acquisition will add a significant migraine prophylaxis dimension to its extensive pain care franchise that currently includes a range of investigational, approved and marketed treatments for migraine, cancer pain and chronic pain.

Labrys is developing LBR-101, a humanised monoclonal antibody that binds to calcitonin gene-related peptide, a well-validated target in migraine. LBR-101 is currently in Phase IIb clinical trials for prevention of episodic and chronic migraines.

LBR-101 was originally discovered by Rinat Neuroscience (bought by Pfizer in 2006) and was acquired by Labrys from Pfizer in 2012.

LBR-101 has completed five Phase I trials with 94 healthy volunteers dosed with active drug. A sixth Phase I bridging study tested intravenous and subcutaneous doses (24 participants received active medication).

The companies claim that potential peak sales for LBR-101 are estimated to reach $2bn-$3bn.

Teva chief scientific officer and global R&D president Michael Hayden said: "With its long half-life, target specificity and favorable pharmacokinetic profile allowing for infrequent, and convenient, subcutaneous administration, LBR-101 represents a very exciting biologic product candidate, and much-needed option, for the management of this truly debilitating condition."