Sanofi and Teva Pharmaceuticals announced a $1.5 billion exclusive collaboration on developing TEV’574, a novel anti-TL1A therapy intended to treat ulcerative colitis (UC) and Crohn’s disease.
Per terms of the deal announced Wednesday morning, Teva will receive $500 million upfront and will be eligible for $1 billion in development and launch milestone payments.
The two drugmakers will share the global development costs as well as net profits and losses in major markets, with additional markets subject to a royalty arrangement.
TEV’574 is currently in Phase 2b clinical trials for treating UC and Crohn’s disease and Sanofi will lead the development of the Phase 3 program.
On the commercialization front, Teva will lead in Europe, Israel and specified countries while Sanofi will take the helm in North America, Japan, certain parts of Asia and the rest of the world.
Going forward, the agreement is set to take effect after closing conditions are met, with initial program results expected next year.
Inflammatory bowel disease, which encompasses both UC and Crohn’s disease, affects around 1.6 million Americans, with approximately 70,000 new cases each year. These statistics have prompted greater interest in the space and larger investments in anti-TL1A therapies from major drugmakers like Sanofi and Teva.
“Anti-TL1As are a promising class of therapies, and we believe that TEV’574 could emerge as a best-in-class option for people living with serious gastrointestinal diseases,” Sanofi CEO Paul Hudson said in a statement. “This collaboration strengthens our commitment to advancing innovative treatment options for inflammatory conditions with a high unmet need and bolsters our goal to be an industry leader in immunology.”
Sanofi announced the collaboration after switching up its research and development leadership over the summer, naming Houman Ashrafian to succeed John Reed, who left for a position at Johnson & Johnson earlier this year.
Meanwhile, Teva CEO Richard Francis added that this collaboration marks a “new era” for the company and bolsters its ongoing Pivot to Growth strategy.
“This collaboration further validates the great science that Teva has to offer with our internally developed anti-TL1A,” Francis stated. “We are honored to partner with Sanofi to bring their proven capabilities, leadership, and success in the immunology and gastroenterology space together with our capabilities to optimize development and global launches.”
