Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) and Royalty Pharma plc (NASDAQ:RPRX) announced on Sunday a funding agreement of up to $500 million to accelerate the clinical development of Teva’s anti-IL-15 antibody, TEV-‘408.
IL-15 is a key cytokine involved in multiple immune-mediated disease pathways.
Phase 1b data from the ongoing TEV-‘408 vitiligo study provide preliminary support for IL-15 as a potential therapeutic target to treat a wide variety of autoimmune conditions.
Vitiligo is a chronic autoimmune skin disease characterized by the loss of pigment-producing cells (melanocytes), resulting in white patches that can appear anywhere on the body.
Teva anticipates sharing results from TEV-‘408 trials during 2026.
The candidate is also being evaluated in a Phase 2a study for celiac disease and was granted Fast Track designation by the U.S. Food and Drug Administration (FDA) in May 2025.
Transaction Terms
Under the terms of the agreement, Royalty Pharma will provide Teva up to $500 million to fund ongoing development costs for TEV-‘408 in vitiligo. The consideration includes $75 million in R&D co-funding to conduct a Phase 2b study targeted to start in 2026.
Based on the future results from Phase 2b in vitiligo, Royalty Pharma will have an option to provide an additional $425 million to co-fund the Phase 3 development program.
If approved and launched, Teva will pay a milestone to Royalty Pharma and a royalty on worldwide net sales of TEV-‘408.
Teva Pharmaceutical outlined a forward-looking outlook for 2026 and beyond.
The company expects fiscal 2026 sales to be flat to slightly down vs. 2025, low-single digit growth in fiscal 2027, and mid-single digit CAGR for fiscal 2030.
For 2026, Teva expects operating profit and adjusted EBITDA to increase versus 2025.
The Israeli pharma firm forecasts around 30% in operating profit in 2026 and over 30% in 2027.
Teva Pharmaceutical reaffirmed its fiscal year 2025 adjusted earnings from $2.50-$2.60 per share to $2.55-$2.65 per share, compared to the consensus of $2.58.
The company narrowed 2025 sales guidance from $16.8 billion-$17.2 billion to $16.8 billion-$17 billion compared to the consensus of $16.89 billion.
In December 2025, S&P Global Ratings upgraded its long-term issuer credit rating for Teva to BB+ from BB with a stable outlook, while Moody’s affirmed its Ba1 rating and revised the outlook to positive.
TEVA Price Action: TEVA stock is up 2.37% at $32.77 at publication on Monday.
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