Teva Pharmaceutical Industries is snapping up private California-based biotech Labrys Biologics in a deal worth up to $825 million.
The Israeli drugmaker is particularly attracted to Labrys' experimental migraine drug LBR-101 - a fully humanised monoclonal antibody that binds to the well-known target calcitonin gene-related peptide (CGRP) - which is currently in Phase IIb clinical trials.
According to the companies, potential peak sakes for LBR-101 are an impressive $2 billion-$3 billion, and Teva says its addition complements the recent acquisition of acute migraine drug Zecuity (obtained through its purchase of NuPathe in January).
"With its long half-life, target specificity and favourable pharmacokinetic profile allowing for infrequent, and convenient, subcutaneous administration, LBR-101 represents a very exciting biologic product candidate, and much needed option, for the management of this truly debilitating condition," said Michael Hayden, Teva’s President of Global R&D and Chief Scientific Officer, further explaining the interest.
Under the terms of the deal, Teva will acquire Labrys for $200 million in upfront payment in cash as well as up to $625 million in contingent payments upon achievement of certain pre-launch milestones.
News of Teva's latest acquisition comes hot on the heels of an internal reshuffle via a suite of organisational changes, including the appointment of Sigurdur Olafsson as President and CEO of a newly established Global Generic Medicines Group, which will take on responsibility for all global commercial activity from July 1.