Royalty Pharma to fund up to $125M for LAI Program in collaboration with Teva

Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries(TEVA) and Royalty Pharma (RPRX), announce a collaboration to further accelerate the clinical research program for Teva’s olanzapine LAI TEV-‘749 by entering into a funding agreement of up to $125M to offset program costs. Olanzapine LAI TEV-‘749 is a once-monthly subcutaneous long-acting injection of the atypical antipsychotic olanzapine that is currently in Phase 3 for the treatment of schizophrenia and has the potential to be the first long-acting olanzapine with a favorable safety profile. “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,” said Richard Francis, President and CEO of Teva. “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 program for us, without impacting resources dedicated to our innovative and generic medicines.” Under the agreement, Royalty Pharma will provide Teva up to $100M option to increase the total funding amount to $125M. Upon U.S. Food and Drug Administration approval, Teva will pay Royalty Pharma the total amount funded over five years, as well as low to mid-single digit royalties upon commercialization. If Teva chooses not to file a New Drug Application with the FDA following positive Phase 3 study results, then Teva will pay an amount equal to 125% of the total amount funded. Teva will lead the development and commercialization of olanzapine LAI TEV-‘749 globally.