(RTTNews) - Teva Pharmaceuticals Industries Ltd. (TEVA) has agreed to acquire Emalex Bioscience, a clinical-stage biopharmaceutical company focused on central nervous system disorders, in a deal that strengthens Teva's neuroscience pipeline and supports its Pivot to Growth strategy.
Emalex's lead candidate is Ecopipam, a first-in-class selective dopamine D1 receptor antagonist being developed for pediatric Tourette syndrome. Ecopipam has received FDA Orphan Drug and Fast Track designations, and positive Phase 3 data demonstrated statistically significant improvement on the study's primary efficacy endpoint. An NDA submission is anticipated in the second half of 2026.
Under the terms of the agreement, Teva will pay $700 million in cash upon closing. Emalex shareholders will also be eligible for up to $200 million in commercial milestone payments, along with royalties on global net sales of Ecopipam, subject to regulatory approval.
Tourette syndrome is a chronic childhood-onset neurodevelopmental disorder characterized by involuntary motor and vocal tics. Current treatments primarily target dopamine D2 receptors and can be limited by side effects, leaving a significant unmet need for additional options. Ecopipam, which blocks dopamine signaling at the D1 receptor, represents a novel approach to managing symptoms while minimizing side effects.
Richard Francis, Teva's President and CEO, said the acquisition exemplifies Teva's growth strategy: "There is a real unmet need in Tourette syndrome, and families deserve additional options that can help manage symptoms while minimizing side effects. With our deep neuroscience expertise, we are well-positioned to advance this first-in-class investigational compound."
Eric Messner, CEO of Emalex, added that the transaction reflects years of focused work to deliver better therapies for patients with Tourette syndrome, noting that Teva's global scale will accelerate access to Ecopipam.
The acquisition, backed by Emalex's founding investor Paragon Biosciences, is expected to close by the third quarter of 2026, subject to customary regulatory approvals. Teva will fund the upfront payment using cash on hand and remains on track to meet its 2027 financial targets.
Teva is scheduled to release its Q1 2026 financial results today at 8:00 AM EST.
TEVA has traded between $14.99 and $37.35 over the past year. The stock closed Tuesday's trading at $31.62, up 1.15%. In the pre-market trading, the stock is at $33.50, up 5.86%.
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