Teva Pharmaceuticals agreed on 29 April to acquire Emalex Biosciences, a Chicago-based developer of a Tourette syndrome treatment, for $700m upfront and up to $200m in further milestone payments.
Why Teva Pharmaceutical Industries Ltd is buying Emalex Biosciences
Teva said ecopipam, a selective dopamine D1 receptor antagonist, adds a first-in-class, registration-ready therapy to its late-stage neuroscience pipeline, in line with its 'Pivot to Grow' strategy. Existing Tourette syndrome medicines act mainly on D2 receptors, and ecopipam's Phase 3 trial in children met its primary efficacy endpoint.
Deal terms and financing
Teva pays $700m in cash on closing. Emalex shareholders are eligible for up to $200m in commercial milestones and royalties on global net sales of ecopipam, subject to regulatory approval.
Regulatory approvals and timing
The deal was expected to close in the third quarter, subject to approvals. Teva's second-quarter results, published on 29 July, booked $724m of acquired IPR&D and $2m of expenses for Emalex, indicating completion during the quarter.
Market context
Pharmaphorum described the deal as Teva's first pipeline-building acquisition after a hiatus of almost a decade.
