Teva Pharmaceuticals bids US$125M for BioXcel’s neuroscience assets
Under the agreement, Teva would acquire worldwide rights to Igalmi (dexmedetomidine) sublingual film, a prescription medicine, as well as BXCL501, an investigational therapy.
USA—Israeli multinational pharmaceutical company Teva Pharmaceuticals International has agreed to acquire a portfolio of neuroscience assets from BioXcel Therapeutics in a deal valued at up to US$125 million.
The proposed transaction forms part of BioXcel Therapeutics’ voluntary Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the District of Delaware.
The court supervised process will facilitate the sale of the company’s key assets.
Under the agreement, Teva would acquire worldwide rights to Igalmi (dexmedetomidine) sublingual film, a prescription medicine, as well as BXCL501, an investigational therapy.
Igalmi is already commercially available and is used to treat acute agitation associated with schizophrenia or bipolar I or II disorder in adults.
Meanwhile, the US Food and Drug Administration (FDA) is reviewing BXCL501 for potential at home use in adults experiencing acute agitation linked to schizophrenia or bipolar I or II disorder.
Deal structure and auction process
Teva will serve as the “stalking horse bidder,” establishing the initial offer for the assets ahead of an auction under Section 363 of the US Bankruptcy Code.
The process allows other potential buyers to submit competing bids before the court approves a final transaction.
The proposed deal includes US$57.5 million in upfront consideration, with an additional US$67.5 million available through contingent payments tied to the timing of FDA approval and the achievement of specified sales milestones.
If Teva does not emerge as the successful bidder, the company will receive a break up fee and reimbursement for certain expenses, in accordance with the agreement.
Evan Lippman, Teva’s executive vice-president for business development, said business development remains an important part of the company’s Pivot to Growth strategy.
“This opportunity strengthens our neuroscience portfolio,” Lippman said, adding that the transaction reflects Teva’s focus on innovative assets that fit its strategy, address important patient needs and offer long term growth potential.
BioXcel continues operations
BioXcel Therapeutics is using the Chapter 11 process to pursue the sale of substantially all of its assets while seeking to maximise value for its stakeholders.
The company has also secured US$19 million in debtor-in-possession financing from its existing lenders.
The financing will support ongoing operations and help fund the bankruptcy proceedings.
During the process, BioXcel Therapeutics will continue supporting patients, healthcare professionals and commercial partners.
Igalmi will also remain commercially available while the proposed transaction and auction process proceed.
The transaction remains subject to the requirements of the Chapter 11 process, including the possibility of competing bids and court approval.
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