Teva Taps Royalty Pharma For $500M To Advance Skin Disease Drug

Core Insights - Teva Pharmaceutical Industries Ltd. and Royalty Pharma plc have entered into a funding agreement of up to $500 million to expedite the clinical development of Teva's anti-IL-15 antibody, TEV-'408, which targets autoimmune diseases [1][3] - Preliminary Phase 1b data from the TEV-'408 vitiligo study supports IL-15 as a potential therapeutic target for various autoimmune conditions [1][2] Funding Agreement - Royalty Pharma will provide Teva with up to $500 million, including $75 million for R&D co-funding to initiate a Phase 2b study in vitiligo, expected to start in 2026 [3] - Based on the results from the Phase 2b study, Royalty Pharma has the option to contribute an additional $425 million for the Phase 3 development program [3] Clinical Development and Future Outlook - Teva anticipates sharing results from the TEV-'408 trials in 2026 and is also evaluating the candidate in a Phase 2a study for celiac disease [2] - The company expects fiscal 2026 sales to be flat to slightly down compared to 2025, with low-single digit growth projected for fiscal 2027 and mid-single digit CAGR for fiscal 2030 [4] Financial Projections - Teva forecasts around 30% operating profit in 2026 and over 30% in 2027 [5] - The company reaffirmed its fiscal year 2025 adjusted earnings guidance to a range of $2.55-$2.65 per share, slightly above the consensus of $2.58 [5] - Teva narrowed its 2025 sales guidance to $16.8 billion-$17 billion, compared to the consensus of $16.89 billion [5] Credit Ratings - In December 2025, S&P Global Ratings upgraded Teva's long-term issuer credit rating to BB+ from BB, maintaining a stable outlook, while Moody's affirmed its Ba1 rating with a positive outlook [6]