Teva Pharmaceuticals International has made a bid to acquire a range of neuroscience assets from BioXcel Therapeutics for a total deal value of $125m.

The agreement arises as part of BioXcel Therapeutics’ voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware, initiating a court-supervised sale of the company’s main assets.

The proposed transaction would see Teva obtain worldwide rights to Igalmi (dexmedetomidine) sublingual film, a prescription medicine, and the investigational BXCL501.

BXCL501 is currently being reviewed by the US Food and Drug Administration (FDA) for potential at-home use in treating acute agitation linked to schizophrenia or bipolar I or II disorder in adults.

Teva has been designated as the “stalking horse bidder”, setting the initial offer for the assets in the Section 363 auction process under the US Bankruptcy Code.

Should Teva not prevail as the successful bidder, the company would receive a break-up fee and reimbursement of certain expenses, as outlined in the agreement.

The upfront consideration for the assets totals $57.5m, with up to a further $67.5m in contingent payments linked to FDA approval timing and specified sales milestones.

Teva business development executive vice-president Evan Lippman said: “Business development plays a critical role in accelerating our Pivot to Growth strategy. This opportunity strengthens our neuroscience portfolio and reflects our disciplined approach to pursuing innovative assets with a clear strategic fit, the potential to make a meaningful difference for patients and attractive long-term growth potential, while balancing risk and value creation.”

Igalmi remains available commercially during this process.

BioXcel Therapeutics is seeking to facilitate the sale of substantially all its assets through the auction process, aiming to maximise stakeholder value.

The company has also secured $19m in debtor-in-possession financing from existing lenders to maintain operations and support the court process.

BioXcel Therapeutics intends to continue supporting patients, prescribers, and commercial partners during the proceedings.