Drug licensing deal brings millions in Israeli capital to Burnaby
Israel’s Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) has announced that it will pay Burnaby-based Xenon Pharmaceuticals Inc. up to $376 million for a worldwide license to a pain drug that Xenon is developing.
The deal will see Teva pay Xenon $41 million up front, and then fund up to $335 million in “development, regulatory and sales-based milestones” for Xenon’s drug, XEN402. For its investment, Teva will obtain an exclusive worldwide license for the drug. Xenon will be entitled to royalties payable on sales and an option to participate in commercialization in the U.S.
Jeremy Levin, president and CEO of Teva, welcomed the deal.
“[This drug] holds the potential to address the significant unmet medical need for the many patients who suffer from chronic pain,” he said. “In addition, XEN402 has the potential for broader therapeutic use across other pain conditions.”
Simon Pimstone, president and CEO of Xenon, also expressed satisfaction with the deal.
“This partnership with Teva,” he said, “is Xenon’s seventh major pharmaceutical alliance, once again highlighting the value of Xenon’s unique genetics approach and translational R&D capabilities.”
The drug is currently in clinical development.