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Teva Pharmaceutical Industries Ltd. (TEVA - Analyst Report) recently entered into an agreement with Champions Oncology Inc. for the development of advanced technology solutions and services so that the evaluation and use of oncology drugs can be personalized.

Champions Oncology’s TumorGraft technology platform will be used to improve and speed up the development of several of Teva's oncology compounds.

Under the partnership, the TumorGraft technology platform will be used to identify highly responsive cancer subtypes and their corresponding molecular and biochemical biomarkers of responsiveness to Teva's novel therapeutic agents. The ultimate target is to develop new and personalized therapeutic options for cancer patients.

Champions Oncology is entitled to an upfront payment from Teva as well as milestone payments. Teva will pay royalties as well.

Teva has signed another oncology deal, this one with the technology development arm of Cancer Research UK’s - Cancer Research Technology Ltd. (CRT). The multi-project alliance is aimed at the research and development of first-in-class cancer drugs that modulate DNA damage and repair response (DDR) processes in cancer cells.

We note that Teva has been working on strengthening its oncology portfolio. The lead product in the company’s oncology product portfolio is Treanda. Treanda, which became a part of Teva’s portfolio following its acquisition of Cephalon, posted sales of $608 million in 2012.

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 new strategy.

At present, companies like Actavis, Inc. (ACT - Analyst Report) and Akorn, Inc. (AKRX - Snapshot Report) look well-positioned with both being Zacks Rank #2 (Buy) stocks.

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