Israel’s Teva Pharmaceutical Industries is increasing its stake in MediWound to 51% under a multi-tiered deal to develop and commercialise products to treat burns and wounds.

The world’s largest drugmaker is joining forces with MediWound, which is purchasing wound management company Polyheal, under a partnership that aims to combine the latter’s products and expertise with MediWound’s technology and production capabilities and Teva’s marketing muscle, media reports note.

As per the terms of the rather complicated deal, investment group Clal Biotech, which currently holds 55% of MediWound and 41% of Polyheal, said MediWound would take of all of Polyheal under its wing in stages for around $200 million, according to Reuters.

Teva will hand over $167 million plus royalties to MediWound for exclusive rights to sell Polyheal's products, which include technologies for treating difficult to heal wounds such as burns and ulcers, potentially giving the firm access to a multi-billion-dollar market.