Boston, MA 06/04/2014 (wallstreetpr) – Israel-based Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is pulling all stops in efforts to improve financial performance for the long-haul.
In addition to internal adjustments, the company is also in the lookout for acquisition opportunities. And in the latest case the company announced the acquisition of Labrys Biologics, a startup that develops migraines treatments. Through the acquisition, Teva will add to its portfolio a drug candidate with the potential of generating up to $3 billion in peak sales.
In a statement issued Tuesday, Teva said it has entered a definitive agreement to acquire the privately-held Labrys for about $825 million. Teva will make $200 million in upfront cash payment to Labrys and up to $625 million in contingent payment following achievement of certain milestones.
Center of attraction
In making a bid for Labrys, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) sees great opportunity in LBR-101, which is a promising chronic migraine and episodic migraine treatment. LBR-101 was reported acquired from Pfizer Inc (NYSE:PFE) in 2012. The drug is currently in Phase IIb clinical trials.
According to Teva officials, LBR-101 has not only shown compelling results in the previous trials, but also has a huge market potential. Teva’s Chief Scientific Officer and President of Global Research and Development, Michael Hayden, said more than 8.5 million people in the U.S., Europe and Japan are in need of chronic and episodic migraine treatment. And with LBR-101, Teva not only expects to improve the quality of life of the patients but also generate higher revenue from the drug.
The closure of the deal between Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) and Labrys is subject to regulatory clearance and other conditions, the companies announced.
Teva’s move to ink a deal with Labrys comes just a day after the company announced its revamped organization that saw it trim the size of its executive committee. The company also unveiled a global quality-control chief.
In the revamped organization, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) intends to bring its global generic operations under one unit.