Teva Pharmaceuticals has entered a partnership with Royalty Pharma to expedite the clinical research programme for its antipsychotic therapy olanzapine LAI (TEV-‘749), which treats schizophrenia.
ATeva will receive $100m from Royalty Pharma to support olanzapine LAI’s ongoing development costs.
Both parties hold an option to raise the funds to a total of $125m.
On receipt of approval from the US Food and Drug Administration (FDA), Teva will reimburse the funding, apart from royalty payments, to Royalty Pharma over five years,
Teva will be responsible for developing and commercialising olanzapine LAI (TEV-‘749) across the globe.
Administered once a month as a subcutaneous injection, olanzapine LAI is an antipsychotic therapy that is being analysed in a Phase III trial to treat schizophrenia.
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If Teva does not seek approval from the US FDA for the drug following positive data from the Phase III trial, the company will repay 125% of the funding amount.
Teva Pharmaceuticals president and CEO Richard Francis stated: “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.
“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 programme for us, without impacting resources dedicated to our innovative and generic medicines.”