Teva Pharmaceuticals Invests $200M In Labrys Biologics

Teva Pharmaceutical Industries Ltd. is set to enhance its range of migraine therapies by acquiring Labrys Biologics in a deal potentially exceeding $800 million. The Israeli pharmaceutical company announced on Tuesday that it will pay $200 million upfront in cash for the privately-owned drug developer, with the possibility of an additional $625 million in milestone payments. Although Labrys Biologics currently has no marketed products, Teva highlighted the company's experimental drug, LBR-101, aimed at preventing chronic migraines, as a significant factor for the acquisition. LBR-101 is currently in midstage clinical trials.

Teva stated that LBR-101 would complement its existing migraine treatment, the Zecuity patch, obtained through the acquisition of NuPathe Inc. Additionally, Teva is working on developing an abuse-resistant, extended-release formulation of the pain medication hydrocodone. On Tuesday morning, Teva's U.S.-traded shares dropped 36 cents to $51.59, in line with a slight decline in the Standard & Poor's 500 index.