Teva to Commercialize Eagle's Cancer Drug in the U.S. - Analyst Blog
Teva Pharmaceutical Industries Ltd. (TEVA) entered into an agreement for the commercialization of Eagle Pharmaceutical’s (EGRX) bendamustine hydrochloride (HCl) rapid infusion candidate – EP-3102 – in the U.S. Eagle Pharma is looking to get EP-3102 approved for the treatment of chronic lymphocytic leukemia (CLL) and indolent B-cell non-Hodgkin lymphoma (NHL).
EP-3102, which enjoys orphan drug status for both CLL and indolent B-cell NHL, may be eligible for seven years of exclusivity, once approved.
Under the terms of the deal, Teva will make an upfront payment of $30 million. Besides this, the company could pay up to $90 million on the achievement of milestones. Moreover, Eagle Pharma will be entitled to double-digit royalties on net sales of the candidate.
Teva will also give up its orphan drug exclusivities for NHL and CLL with respect to EP-3102, which will help the candidate reach the market more quickly. Both companies have also agreed to settle the patent infringement litigation between them.
In addition to the Eagle deal, Teva also announced the launch of its generic version of Lovenox (prophylaxis of deep vein thrombosis) and Zyvox (treatment of infections caused by gram-positive bacteria).
Earlier in the month, Teva reported fourth quarter 2014 results. The company also reiterated its 2015 guidance of earnings of $5.00 - $5.30 per share on revenues of $19 billion to $19.4 billion.
Teva carries a Zacks Rank #2 (Buy). An equally well-ranked stock in the health care sector is Actavis plc (ACT). A better-ranked stock is Impax Laboratories (IPXL) with a Zacks Rank #1 (Strong Buy).
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