Teva and Blackstone Life Sciences Announce $400 Million Strategic Growth Capital Agreement to Advance duvakitug
MWN-AI** Summary
Teva Pharmaceuticals has announced a strategic collaboration with Blackstone Life Sciences (BXLS), securing a $400 million investment to advance the clinical development of duvakitug, a human monoclonal antibody targeting TL1A. This funding agreement will be spread over four years and aligns with Teva’s "Pivot to Growth" strategy, aimed at enhancing its pipeline of innovative therapies and ensuring long-term growth.
Duvakitug is currently undergoing phase 3 clinical trials for treating ulcerative colitis (UC) and Crohn’s disease (CD), both forms of inflammatory bowel disease (IBD), characterized by chronic gastrointestinal inflammation. Recent data from phase 2b trials demonstrated the drug's potential to provide durable efficacy in these conditions. Under the terms of the partnership, BXLS will receive milestone payments and low single-digit royalties from worldwide sales of duvakitug, contingent upon regulatory approval from the U.S. Food and Drug Administration (FDA).
Evan Lippman, Teva's Executive Vice President of Business Development, emphasized the importance of this partnership for accelerating pipeline advancements while maintaining financial health. The partnership bolsters Teva’s commitment to develop therapies for conditions with unmet medical needs. Dr. Nicholas Galakatos of BXLS highlighted the collaboration as a means to support Teva's innovation efforts and to deliver crucial treatments to patients struggling with IBD.
Teva’s broader mission focuses on transforming into a leading biopharmaceutical entity while capitalizing on its substantial generics business, thus addressing diverse patient needs. This collaboration not only enhances Teva's developmental capabilities but also strengthens its position in the biopharmaceutical landscape, with the potential to introduce a best-in-class therapy for IBD.
MWN-AI** Analysis
The recent announcement of Teva Pharmaceuticals and Blackstone Life Sciences (BXLS) entering a strategic growth capital agreement for $400 million toward the development of duvakitug signifies a pivotal move in Teva's "Pivot to Growth" strategy, which aims to enhance and accelerate its innovative pipeline. As a financial analyst, this presents an intriguing investment opportunity for stakeholders to consider moving forward.
Duvakitug, a monoclonal antibody targeting TL1A, is currently evaluating its potential as a top-tier treatment for ulcerative colitis (UC) and Crohn’s disease (CD). The funding arrangement illustrates Teva's commitment to innovation while working alongside BXLS, which fosters a partnership that combines substantial financial resources with strategic operational expertise. The commitment to clinical development, compounded by positive phase 2b data, further solidifies the product's potential and Teva’s future revenue streams.
Investors should assess how the success of duvakitug’s development aligns with broader market trends and the increasing demand for effective treatments in the growing field of inflammatory bowel disease (IBD). With approximately 4.9 million global cases of IBD, the clinical success of duvakitug could position Teva for substantial growth, allowing the company to capture a significant market share in this unmet therapeutic area.
The strategic agreement also showcases Teva's adaptability amidst a competitive biopharmaceutical landscape. The anticipated regulatory and commercial milestones can present additional value if achieved, making the stock potentially appealing. However, it's essential for investors to remain cautious, as clinical trial outcomes are inherently uncertain and subject to regulatory review.
In summary, while the agreement with BXLS presents an opportunity for growth within Teva’s innovative pipeline, investors should keep an eye on clinical developments and financial performance metrics to gauge the ongoing viability of Teva’s long-term growth strategy.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Blackstone Life Sciences will provide $400 million to support development of duvakitug, a human monoclonal antibody targeting TL1A
- Duvakitug is currently in phase 3 clinical studies for ulcerative colitis (UC) and Crohn’s disease (CD)
- Agreement supports Teva’s Pivot to Growth strategy to accelerate its innovative pipeline and drive long-term growth
PARSIPPANY, N.J. and CAMBRIDGE, Mass., March 03, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) and funds managed by Blackstone Life Sciences (“BXLS”) today announced a $400 million strategic funding agreement spread across four years to support the continued clinical development of duvakitug. Additionally, under the terms of the agreement, BXLS will be eligible for regulatory and commercial milestones as well as royalties on duvakitug worldwide sales.
“Today’s announcement highlights how we are turning strategy into action under Pivot to Growth,” said Evan Lippman, Executive Vice President, Business Development, Teva. “By pursuing disciplined, capital-efficient partnerships, we are accelerating pipeline advancement while maintaining financial strength. This is the model we will continue using to build a more innovative, resilient, and growth-oriented Teva.”
Duvakitug is a human monoclonal antibody targeting TL1A, a promising target with the potential for broad therapeutic application across multiple indications. Under a separate and independent agreement announced in 2023, Teva is co-developing and, subject to regulatory approval, will be co-commercializing this asset with Sanofi. Duvakitug is currently in phase 3 clinical studies for the treatment of UC and CD. Both companies recently announced phase 2b duvakitug maintenance data demonstrating clinically meaningful durable efficacy in UC and CD.
“We are excited to partner with Teva and support their innovation priorities as they advance a critical new product to patients who have significant unmet need,” said Dr. Nicholas Galakatos, Global Head of BXLS. “This transaction further demonstrates our focus on partnering with leading biopharmaceutical companies to execute their growth initiatives.”
“Duvakitug has the potential to be a best-in-class therapy in a large and growing space, and the Teva and Sanofi teams are well positioned to develop and commercialize this important medicine,” said Paris Panayiotopoulos, Senior Managing Director, BXLS. “In line with our mission, we are delighted to partner with Teva on their Pivot to Growth strategy and to help bring duvakitug to patients as soon as possible.”
Transaction Terms
Under the agreement, BXLS will provide Teva $400 million to fund ongoing and future development costs for duvakitug, spread over four years. As part of the funding arrangement and subject to the approval of duvakitug by the U.S. Food and Drug Administration (FDA), Teva will pay BXLS a milestone payment. BXLS will also be eligible to receive commercial milestones and low single-digit royalties on duvakitug worldwide sales, subject to customary terms and conditions.
About IBD
IBD is an autoimmune disorder characterized by chronic inflammation of the gastrointestinal (GI) tract. Globally, approximately 4.9 million cases of IBD have been identified, with incidence rising in several regions. The two main types of IBD are UC and CD, which are characterized by repetitive cycles of relapses and remission. Common symptoms of both conditions include persistent diarrhea, rectal bleeding, abdominal pain, loss of appetite, and weight loss.
Prolonged inflammation can lead to damage within the GI tract, including fibrosis, a common complication of IBD characterized by an excessive accumulation of scar tissue in the intestinal wall, which may cause narrowing and obstruction.
Currently, there is no cure for IBD. The goal of current treatment is to induce and maintain remission and prevent flares.
About duvakitug
Duvakitug, a human monoclonal antibody targeting TL1A, is currently in phase 3 clinical studies for the treatment of UC and CD. TL1A signaling is believed to amplify inflammation and drive fibrosis associated with IBD through binding to its receptor, DR3. Duvakitug preferentially inhibits TL1A-DR3 signaling over DcR3 (decoy receptor 3) binding, with the potential to reduce inflammation and fibrosis.
The safety and efficacy of duvakitug have not been reviewed by any regulatory authority.
Under a separate and independent agreement announced in 2023, Teva is co-developing and, subject to regulatory approval, will be co-commercializing this asset with Sanofi.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
About Blackstone Life Sciences
Blackstone Life Sciences (BXLS) is a leading private investment platform with capabilities to invest across the life cycle of companies and products within the key life science sectors. By combining scale investments and hands-on operational leadership, BXLS helps bring to market promising new medicines and medical technologies that improve patients’ lives and currently has $15 billion in assets under management.
Teva Cautionary Note Regarding Forward-Looking Statements
This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to execute the agreement with Blackstone Life Sciences and to successfully develop and commercialize duvakitug (anti-TL1A; TEV-’574) for the treatment of ulcerative colitis and Crohn’s disease; our ability to successfully compete in the marketplace, including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to execute on our organizational transformation and to achieve expected cost savings; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
Teva Media Inquiries
TevaCommunicationsNorthAmerica@tevapharm.com
Teva Investor Relations Inquires
TevaIR@Tevapharm.com
Blackstone
David Vitek
(212) 583-5291
David.Vitek@blackstone.com
FAQ**
How does the $400 million investment from Blackstone Life Sciences into Teva Pharmaceutical Industries Limited American Depositary Shares TEVA align with Teva's broader Pivot to Growth strategy?
What specific milestones does Blackstone Life Sciences expect to achieve in relation to the development of duvakitug targeting TL1A under the Teva Pharmaceutical Industries Limited American Depositary Shares TEVA agreement?
Considering the potential of duvakitug as a best-in-class therapy, how might the funding from Blackstone Life Sciences impact the market performance of Teva Pharmaceutical Industries Limited American Depositary Shares TEVA?
What risks associated with the regulatory approval of duvakitug could affect the investment by Blackstone Life Sciences in Teva Pharmaceutical Industries Limited American Depositary Shares TEVA?
**MWN-AI FAQ is based on asking OpenAI questions about Teva Pharmaceutical Industries Limited American Depositary Shares (NYSE: TEVA).
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