By Angela Chen
Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV) agreed to a
licensing agreement that lets it promote and distribute Eagle
Pharmaceuticals Inc.'s (EGRX) cancer drug EP-3102--a potential
competitor to Teva's own treatment--in the U.S.
The news sent shares of Eagle up 3.8% to $21.78 in light
premarket trading.
Teva will pay Eagle, which is responsible for obtaining all
regulatory approvals and conducting clinical studies, $30 million
in cash. Eagle is eligible to receive up to $90 million in
additional milestone payments, as well as double-digit royalties on
sales.
The drug, EP-3102, is a rapid-infusion product that treats
chronic lymphocytic leukemia and a type of non-Hodgkin's lymphoma.
It is similar to Teva's chronic lymphocytic leukemia treatment
Treanda, which has been a major source of revenue for the Israeli
company.
"With a substantially shorter infusion time [than Treanda],
Eagle's rapid infusion bendamustine HCl represents an important and
improved benefit to both patients and healthcare providers," said
Paul Rittman, vice president of oncology.
Teva will waive its orphan-drug exclusivities for these two
conditions with respect to EP-3102, which should allow the
treatment to come to market more quickly.
Eagle already has submitted a new drug application for EP-3102
to the U.S. Food and Drug Administration and requested priority
review. The drug had previously received orphan-drug designation
and may be eligible for seven years of exclusivity.
Separately, the companies said they will settle a pending
patent-infringement action between them in the U.S. District Court
for the District of Delaware.
Write to Angela Chen at angela.chen@wsj.com
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