Teva Secures USD 400 Million From Blackstone Life Sciences to Fund Duvakitug Development
Teva Pharmaceutical Industries, the Israel-headquartered pharmaceutical company with U.S. operations based in Parsippany, New Jersey, has entered into a USD 400 million strategic growth capital agreement with Blackstone Life Sciences to advance duvakitug, a human monoclonal antibody targeting TL1A, through late-stage clinical development. The deal, structured as a four-year funding arrangement rather than a traditional equity financing round, will support ongoing phase 3 clinical trials of the drug in ulcerative colitis and Crohn's disease.
Blackstone Life Sciences, which manages approximately USD 15 billion in assets, is the sole capital provider under the agreement. In return for the USD 400 million commitment, Blackstone will be eligible to receive a regulatory milestone payment contingent on US FDA approval of duvakitug, along with commercial milestones and low single-digit royalties on worldwide sales. Teva said the funding will be directed toward ongoing and future development costs for duvakitug, aligning with the company's stated Pivot to Growth strategy to accelerate its pipeline while maintaining financial discipline. Evan Lippman, Executive Vice President of Business Development at Teva, characterized the arrangement as a "capital-efficient partnership."
Duvakitug is Teva's lead novel drug candidate. The duvakitug TL1A antibody works by preferentially inhibiting TL1A-DR3 signaling, a pathway believed to amplify inflammation and drive fibrosis in inflammatory bowel disease. By targeting this mechanism, duvakitug aims to address both inflammatory and fibrotic components of the disease, which represents a differentiation point relative to existing ulcerative colitis Crohn's disease treatment options. The drug is currently in duvakitug phase 3 clinical trials for both indications. Teva and its co-development partner Sanofi recently reported phase 2b maintenance data that the companies described as demonstrating durable efficacy in both ulcerative colitis and Crohn's disease. The safety and efficacy of duvakitug have not been reviewed by any regulatory authority.