Generic and innovative medicines company Teva Pharmaceuticals Ltd (NYSE: TEVA) and Alvotech (NASDAQ: ALVO), a provider of biosimilar medicines, announced on Monday an agreement to strengthen their strategic partnership by expanding exclusive commercialisation rights in the US for two new biosimilar candidates and line extensions of two existing biosimilar candidates.

This collaboration aims to jointly develop and manufacture biosimilar medicines for the growing US market. The agreement includes milestone payments and profit sharing from biosimilar commercialisation. Teva will also invest USD40m in Alvotech through subordinated convertible bonds to support the continued development of its biosimilars pipeline.

The partnership centers around AVT02, a biosimilar candidate for Humira (adalimumab) and AVT04, a candidate for Stelara (ustekinumab). AVT02 has received approvals as a biosimilar to Humira in various countries, while AVT04 is an investigational product pending regulatory approval.

Teva has a diverse portfolio of over 3,500 products, serving around 200 million patients worldwide.

Alvotech, founded by Robert Wessman, has a broad pipeline of eight disclosed candidates targeting various medical conditions.