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Theravance Biopharma Signs Licensing Deal with Takeda
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Theravance Biopharma, Inc. (TBPH - Free Report) announced that it has entered into a global license, development and commercialization agreement with Takeda Pharmaceutical Company Limited for its 5-HT4 receptor agonist, TD-8954, for the treatment of gastrointestinal motility disorders, including enteral feeding intolerance (EFI).
We note that TD-8954 is being developed for the short-term use with EFI to achieve early nutritional adequacy in critically ill patients at high nutritional risk. Currently, Theravance Biopharma has completed evaluating TD-8954 in a study that assessed the safety, tolerability and pharmacodynamics of a single dose, administered intravenously in comparison to metoclopramide in critically ill patients with EFI.
Terms of the Agreement
Under the terms of the deal, Theravance Biopharma will receive an upfront cash payment of $15 million from Takeda. The company is also eligible to receive development and sales milestone payments and double-digit royalties on global sales. The first $110 million in milestone payments will be related to the development, regulatory and commercial launch for EFI or other intravenously dosed indications. The transaction is expected to close shortly.
Our Take
We believe that Theravance Biopharma’s strategic decision to license TD-8954 comes as a big positive as Takeda specializes in manufacturing and commercialization of treatments that improve the health of patients with gastroenterological disorders. Being an industry leader, the addition of TD-8954 to Takeda’s portfolio will drive the continued development of the compound.
Successful development and commercialization of TD-8954, which has a Fast Track Designation in the U.S., will help to fulfill the unmet need in the EFI indication. Currently, EFI is said to affect approximately one million individuals in the U.S.
Both Theravance Biopharma and Takeda currently carry a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company (BMY - Free Report) and Pfizer Inc. (PFE - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
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Theravance Biopharma Signs Licensing Deal with Takeda
Theravance Biopharma, Inc. (TBPH - Free Report) announced that it has entered into a global license, development and commercialization agreement with Takeda Pharmaceutical Company Limited for its 5-HT4 receptor agonist, TD-8954, for the treatment of gastrointestinal motility disorders, including enteral feeding intolerance (EFI).
We note that TD-8954 is being developed for the short-term use with EFI to achieve early nutritional adequacy in critically ill patients at high nutritional risk. Currently, Theravance Biopharma has completed evaluating TD-8954 in a study that assessed the safety, tolerability and pharmacodynamics of a single dose, administered intravenously in comparison to metoclopramide in critically ill patients with EFI.
Terms of the Agreement
Under the terms of the deal, Theravance Biopharma will receive an upfront cash payment of $15 million from Takeda. The company is also eligible to receive development and sales milestone payments and double-digit royalties on global sales. The first $110 million in milestone payments will be related to the development, regulatory and commercial launch for EFI or other intravenously dosed indications. The transaction is expected to close shortly.
Our Take
We believe that Theravance Biopharma’s strategic decision to license TD-8954 comes as a big positive as Takeda specializes in manufacturing and commercialization of treatments that improve the health of patients with gastroenterological disorders. Being an industry leader, the addition of TD-8954 to Takeda’s portfolio will drive the continued development of the compound.
Successful development and commercialization of TD-8954, which has a Fast Track Designation in the U.S., will help to fulfill the unmet need in the EFI indication. Currently, EFI is said to affect approximately one million individuals in the U.S.
Both Theravance Biopharma and Takeda currently carry a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company (BMY - Free Report) and Pfizer Inc. (PFE - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>