Teva to Acquire Labrys BiologicsBy
As part of a strategy to increase its position in pain care, Teva Pharmaceutical Industries Ltd. has agreed to acquire Labrys Biologics, Inc., a privately held development-stage biotechnology company focused on treatments for chronic migraines and episodic migraines, for $200 million in an upfront payment in cash at closing as well as up to $625 million in contingent payments upon achievement of certain pre-launch milestones.
Labrys is developing LBR-101, a fully humanized monoclonal antibody that binds to calcitonin gene-related peptide (CGRP). The drug is currently in Phase IIb clinical trials for prevention of chronic and episodic migraine. Teva's acquisition of the LBR-101 program targeting high frequency episodic and chronic migraine clearly complements the recent addition of Zecuity, a therapy for the acute treatment of migraine, obtained through the acquisition of NuPathe earlier this year. Potential peak sales for LBR-101 are estimated to reach $2 billion to $3 billion, according to information from Teva. LBR-101, originally discovered by Rinat Neuroscience (bought by Pfizer in 2006), was acquired by Labrys from Pfizer in 2012.
With the goal of becoming a global leader in pain by 2020, the Labrys acquisition adds a migraine prophylaxis dimension to Teva's pain-care franchise, which includes a range of investigational, approved and marketed treatments for migraine, cancer pain, and chronic pain.
The closing of this transaction is subject to antitrust clearance and satisfaction of other conditions.
Source: Teva Pharmaceutical Industries