Teva and Nuvelution partner on Tourette drug development

Israel’s Teva Pharmaceutical Industries (NYSE:TEVA) and privately-held Nuvelution Pharma have inked a deal to develop Austedo (deutetrabenazine) tablets for the treatment of tics associated with Tourette syndrome (TS) in pediatric patients in the USA.

This risk-sharing partnership will accelerate development of Austedo in TS, hopefully bringing a much needed new treatment option to affected young patients more quickly. Earlier this year, Austedo was approved in the USA for tardive dyskinesia in adults and for the treatment of chorea associated with Huntington's disease, making it the first deuterated product approved by the Food and Drug Administration.

This novel agreement provides a creative risk-sharing funding framework for progressing a promising pipeline opportunity into an approved product, with a success-based investment return for Nuvelution. Under the terms of the agreement, Nuvelution will fund and manage clinical development, driving all operational aspects of the Phase III program, which is expected to commence later this year. Teva will lead the regulatory process and be responsible for commercialization. Upon FDA approval of Austedo in TS, Teva will pay Nuvelution a pre-agreed return on its invested capital.