Sanofi punts up to $1.5 billion on Teva's IBD candidate

French pharma major Sanofi (Euronext; SAN) has entered into a collaboration with the US subsidiary of global generics leader Israel-based Teva Pharmaceutical Industries (NYSE and TASE: TEVA).

The collaboration to co-develop and co-commercialize concerns TEV ‘574, which is currently in Phase IIb clinical trials for the treatment of ulcerative colitis and Crohn's disease, two types of inflammatory bowel disease (IBD).

While Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi will do so in North America, Japan, other parts of Asia and the rest of the world. The transaction will become effective after customary closing conditions are met. Initial program results are expected to be available in 2024.