Sanofi agreed to pay €469 million ($492 million) upfront for rights to co-develop and jointly market Teva’s anti-TL1A candidate TEV-48574 for inflammatory bowel disease (IBD), the companies announced Wednesday. A deal had been expected after sources said in May that Teva was seeking a partner for the experimental drug having previously highlighted it as one of its "key pipeline assets."
TEV-48574 is currently in Phase IIb studies for the treatment of ulcerative colitis and Crohn's disease. “Anti-TL1As are a promising class of therapies, and we believe that TEV’574 could emerge as a best-in-class option,” remarked Sanofi CEO Paul Hudson.
Under the agreed terms, Sanofi will lead Phase III programme for TEV-48574, with both companies equally sharing the development costs and net profits and losses in major markets, with other markets subject to a royalty arrangement. Along with the upfront payment, Teva is eligible for milestones of up to €940 million ($986 million), with the Israeli drugmaker leading commercialisation in Europe, Israel and specified other countries, while Sanofi will head-up marketing in North America, Japan, other parts of Asia and the rest of the world.