Sanofi, Teva announce collaboration to co-develop TEV ‘574

Sanofi (SNY) and Teva Pharmaceuticals, a U.S. subsidiary of Teva Pharmaceutical Industries (TEVA) announce a collaboration to co-develop and co-commercialize asset TEV ‘574, currently in Phase 2b clinical trials for the treatment of Ulcerative Colitis and Crohn’s Disease, two types of inflammatory bowel disease. Under the terms of the new collaboration agreement, Teva will receive an upfront payment of $500M and up to $1B in development and launch milestones. Each company will equally share the development costs globally and net profits and losses in major markets, with other markets subject to a royalty arrangement and Sanofi will lead the development of the Phase 3 program. Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi will lead commercialization in North America, Japan, other parts of Asia and the rest of the world. The transaction will become effective after customary closing conditions are met. Initial program results are expected to be available in 2024.