Israel-based pharmaceutical company Teva has signed a definitive agreement to acquire privately-held pharmaceutical and drug delivery company MicroDose Therapeutx for $40m, as part of a strategy to expand its pipeline of respiratory products.
According to the terms of the deal, Teva will make additional payments of up to $125m if regulatory and development milestones are achieved, besides sales-based targets and tiered royalty payments upon commercialisation of MDT-637 and an earlier stage asthma / COPD medicine.
With this acquisition, Teva, which is a leading manufacturer of generic drugs, will gain access to MicroDose's products and technologies, such as its multi-dose dry powder nebuliser device, which can be administered within half a minute and does not need any preparation.
MicroDose's present pipeline is led by MDT-637 for respiratory syncytial virus (RSV), which is an inhaled, small-molecule, low dose, fusion inhibitor that stops viral replication.
Teva Global R&D, chief scientific officer and president Michael Hayden said that Teva will be able to count the MicroDose products and technologies amongst its growing respiratory portfolio.
"The MicroDose platform is both simple and attractive, and their addition will help us to address the unmet needs of the youngest and oldest patients, who have a requirement for a better way of taking the medicines they rely upon," Hayden said.
MicroDose chairman, CEO and president Anand V Gumaste said that the company believes this agreement provides a unique opportunity to advance ts platform technology and development programmes for the benefit of patients.
"Teva has a strong and growing franchise in respiratory diseases, with extensive experience in both delivery mechanisms and novel therapeutic modalities.
"Teva also has a worldwide market presence and leading global supply chain," Gumaste said.
In the deal, Stifel served as the exclusive financial advisor to MicroDose Therapeutx.
MicroDose, which was founded in 1998 with headquarters in New Jersey, focuses on inhalation technologies and products for lung diseases and infections.
Image: Israel-based Teva is a leading manufacturer of generic drugs. Photo: Courtesy of Teva Pharmaceuticals Industries Ltd.