Teva Pharmaceutical Industries Ltd., and Microchips Biotech, Inc. , have formed a partnership under which the companies will explore ways to apply Microchips Biotech's implantable drug delivery device to Teva's portfolio of products with the goal of enhancing clinical outcomes for patients on chronic drug therapies. Microchips Biotech's electronic device is made up of microchip arrays that can store therapeutic doses of drug for periods ranging from months to years. The device can be programmed to release drug on a pre-determined schedule and will have wireless control features.

Under the terms of the agreement Teva will make a $35 million upfront payment to Microchips Biotech in the form of an equity investment and technology access fee. The partnership has an initial focus on one selected disease area, but will provide Teva with the option to later expand the program into several additional therapeutic areas and sensing applications that are proprietary to Teva. As programs advance, Microchips Biotech will receive development and commercial milestone payments and royalties on future product sales. Microchips Biotech will also receive funding to develop products for any future additional indications Teva may develop, and Teva will be responsible for Phase II and Phase III clinical development and regulatory filings.

The microchip-based implant is a self-contained hermetically-sealed drug delivery device that can be implanted and removed in a physician's office. The implant has been clinically validated in human studies delivering parathyroid hormone in osteoporosis patients, and the system is fully programmable via wireless communications to adjust dosing by physician and/or patient. The microchip-based technology was originally developed by researchers at the Massachusetts Institute of Technology, Robert Langer, PhD and Michael J. Cima, PhD.

Source: Teva Pharmaceutical Industries