Teva Pharmaceuticals, the Parsippany-based affiliate of Teva Pharmaceutical Industries Ltd. announced a massive $400 million strategic funding agreement today with Blackstone Life Sciences. The capital injection is earmarked to accelerate the development of duvakitug, a high-stakes immunotherapy currently in Phase 3 clinical trials.
The deal is a cornerstone of Teva’s “Pivot to Growth” strategy, aimed at transforming the company from a generics powerhouse into a leader in innovative biopharmaceuticals.
Duvakitug is a human monoclonal antibody that targets TL1A, a protein believed to be a master regulator of inflammation and fibrosis (scar tissue) in the gastrointestinal tract. By inhibiting this protein, Teva hopes to provide a “best-in-class” treatment for millions suffering from Inflammatory Bowel Disease (IBD), specifically Ulcerative Colitis (UC) and Crohn’s Disease (CD).
Unlike many current treatments that only manage symptoms, duvakitug’s ability to potentially reduce fibrosis could address the long-term damage that leads to intestinal obstructions and surgery.
Under the terms of the four-year agreement, Blackstone will provide the $400 million necessary to cover ongoing and future clinical costs. In return, Blackstone is eligible for:
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Milestone payments: Cash awards upon FDA approval and specific regulatory hurdles.
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Global royalties: Low single-digit royalties on worldwide sales of the drug.
“By pursuing disciplined, capital-efficient partnerships, we are accelerating pipeline advancement while maintaining financial strength,” Evan Lippman, executive vice president of business development at Teva. “This is the model we will continue using to build a more innovative, resilient, and growth-oriented Teva.”
Teva is not alone in its pursuit of duvakitug. Under a separate 2023 agreement, the company is co-developing the drug with global health care leader Sanofi. The infusion of Blackstone capital allows Teva to aggressively move through Phase 3 trials—the final and most expensive stage of drug development—without straining its internal balance sheet.
For New Jersey’s “Life Sciences Corridor,” the deal reinforces Parsippany as a hub for major pharmaceutical innovation. If successful, duvakitug would enter a massive and growing global market for IBD treatments, which currently affects approximately 4.9 million people worldwide.
