) recently announced that
Teva Pharmaceutical Industries
) has decided that it will not exercise its option to license
Rexahn's oncology candidate, RX-3117.
Teva and Rexahn had a Research and Exclusive License Option
Agreement for RX-3117, a novel DNA and RNA synthesis inhibitor
being evaluated for the treatment of solid cancer tumors.
Teva had filed an Investigational New Drug (IND) application
to the U.S. Food and Drug Administration (FDA) for RX-3117 in Jul
2013. As per the terms of the agreement, Teva had to decide
within 45 days of the filing of the IND whether it would
exclusively license RX-3117.
Based on strategic reasons, Teva has decided not to go ahead
with the licensing option. As a result, the agreement between the
companies was terminated and all worldwide development and
commercialization rights to RX-3117 have been retained by Rexahn.
Rexahn intends to move RX-3117 into a phase I study in cancer
patients within the next three months and plans to explore
Meanwhile, Teva has been working on streamlining its pipeline
and expects to have about 10 new therapeutic entities (NTEs) in
development over the next couple of years which should start
generating sales from 2016.
The Rexahn deal is not the first collaboration to be
terminated by Teva this year. Earlier this year, Teva terminated
its collaboration with CureTech Ltd. for the development of
CT-011. CT-011 was being developed for the treatment of
hematological malignancies and solid tumors. Teva also announced
its intention to terminate its biologics program with Lonza.
Teva currently carries a Zacks Rank #3 (Hold). The company is
going through a tough transition period given fewer large generic
opportunities, potential new competition for branded products
(especially Copaxone) and a higher cost base.
However, we are encouraged by Teva's plans to improve its
position. Teva said that it intends to accelerate growth
platforms, protect and expand core franchises, expand its global
presence, pursue strategic deals and reduce the cost base. We
expect investor focus to remain on the execution of the company's
At present, companies like
) look well-positioned with both being Zacks Rank #2 (Buy)
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