Teva Pharmaceuticals and funds managed by Blackstone Life Sciences have announced a $400 million strategic funding pact designed to accelerate clinical development of duvakitug as an effective treatment for inflammatory bowel disease (IBD).

 

The funding will be spread over four years, with BXLS also eligible for regulatory and commercial milestones, plus royalties on worldwide sales.

 

“Announcement highlights how we are turning strategy into action under Pivot to Growth,” said Evan Lippman, Executive Vice President, Business Development, Teva. “By pursuing disciplined, capital-efficient partnerships, we are accelerating pipeline advancement while maintaining financial strength. This is the model we will continue using to build a more innovative, resilient, and growth-oriented Teva.”

 

Duvakitug, a human monoclonal antibody targeting TL1A, is currently in phase 3 clinical trials for IBD such as ulcerative colitis (UC) and Crohn’s disease (CD). The therapy showed clinically meaningful, durable efficacy in recent phase 2b maintenance studies. Under a separate 2023 agreement, Teva is co-developing and, pending regulatory approval, will co-commercialize duvakitug with Sanofi.

 

“We are excited to partner with Teva and support their innovation priorities as they advance a critical new product to patients who have significant unmet need,” said Nicholas Galakatos, Global Head of BXLS.

 

“Duvakitug has the potential to be a best-in-class therapy in a large and growing space, and the Teva and Sanofi teams are well positioned to develop and commercialize this important medicine,” added Paris Panayiotopoulos, Senior Managing Director, BXLS. “In line with our mission, we are delighted to partner with Teva on their Pivot to Growth strategy and to help bring duvakitug to patients as soon as possible.”

 

Under the terms of the deal, BXLS will provide Teva $400 million to fund ongoing and future development costs. Upon US FDA approval, Teva will make milestone payments to BXLS, who will also be eligible for commercial milestones and low single-digit royalties on global sales.