Teva Acquires Labrys, Expands CNS Portfolio
Teva Pharmaceutical announced that it has successfully completed its acquisition of Labrys Biologics.
The Israeli company acquired the migraine treatment-focused firm for up to $825 million in payment. According to the terms of the arrangement, an upfront payment of $200 million in cash would followed by up to $625 million in milestone payments based on completion of certain pre launch developments.
Along with Labrys, Teva gains its lead candidate LBR-101, a fully humanized monoclonal antibody undergoing Phase IIB clinical trials for the prevention of chronic and episodic migraine. The drug is estimated to bring in peak sales of $2 billion up to $3 billion. The company said its recent purchase complements its acquisition of Zecuity, another drug intended for the acute treatment of migraine.
Michael Hayden, Teva’s President of Global R&D and CSO, said that the company is happy to complete its acquisition of the biotech firm and its CNS portfolio. “It’s an exciting opportunity to develop a much needed treatment option for people suffering from the impact of chronic and episodic migraine. The CGRP pathway is scientifically robust, the molecule has the right specifications to deliver on its clinical promise, and the patient population is both large and underserved. This could make a real and meaningful difference to patients’ lives.”
The Labrys acquisition significantly increases Teva’s lineup of pain care drugs, which includes several investigational and approved treatments for migraine, chronic pain, and cancer pain. Teva recently said it plans to merge its generic operations into a global generic drugs unit which will take over the company’s over the counter (OTC) business as well.
The company was also recently in the news for entering into an exclusive marketing and distribution agreement with Arena Pharmaceuticals for Belviq as a weight loss or management treatment option in Israel. Teva’s subsidiary Abic Marketing gains exclusive rights to Belviq and will make upfront and milestone payments to Arena’s subsidiary, Arena GmbH.