Teva pays $40 million upfront to market Alexza's Adasuve in USA

9 May 2013

The US subsidiary of Israeli generics giant Teva Pharmaceuticals Industries (NYSE: TEVA) has entered into an exclusive US license and supply agreement for USA-based Alexza Pharmaceuticals (Nasdaq: ALXA) Adasuve (Staccato loxapine) inhalation powder 10mg for the acute treatment of agitation associated with schizophrenia or bipolar I disorder in adults.

After several regulation setbacks, the UKS Food and Drug Administration approved Adasuve for the acute treatment of agitation associated with schizophrenia and bipolar disorder late last year (The Pharma Letter December 27, 2012).

Under the terms of the deal, Alexza will receive an upfront cash payment of $40 million and is eligible to receive up to $195 million in additional milestone payments, based upon successful completion of the Adasuve post-approval studies in the USA and achieving net sales targets. In addition, Teva will make tiered, royalty payments based on net commercial sales of the drug.

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