Teva Pharmaceutical Industries Ltd. licensed a pain drug and ended an alliance for its wound-care business as part of the strategy Chief Executive Officer Jeremy Levin is laying out today to investors.
Teva will pay Xenon Pharmaceuticals Inc. $41 million for the right to market XEN402, a drug under development for a variety of painful disorders, the Petach Tikvah, Israel-based company said in a statement. Xenon is eligible for additional payments of as much as $335 million if the medicine meets development, regulatory and sales goals. The agreement fits with Teva’s strategy to focus on drugs for areas including pain and illnesses of the central nervous system, the company said.
Levin’s strategy marks a shift for Teva from growth through acquisitions to more focus on developing branded drugs through research and licensing agreements. Teva also said its branded businesses are focusing on CNS, oncology, pain, respiratory and women’s health therapeutic areas.
Teva also ended a partnership with a unit of Tel Aviv-based Clal Biotechnology Industries Ltd. for the development of its PolyHeal and NexoBrid products. Teva notified Clal it would not continue the collaboration as wound-care is not one of its strategic focus areas, Clal said.
Teva’s Levin will elaborate on the company’s new strategy in a meeting with investors today at 12:00 p.m. New York time. Teva’s best-selling drug, the multiple-sclerosis treatment Copaxone, faces competition from newer oral drugs and is set to lose patent protection by 2015.