Healthcare company Sanofi (EURONEXT: SAN) (NASDAQ: SNY) and Teva Pharmaceuticals, a US subsidiary of Teva Pharmaceutical Industries Ltd (NYSE and TASE: TEVA), a provider of generic and innovative medicines, announced on Wednesday that the companies have entered an exclusive collaboration to co-develop and co-commercialise TEV '574, an anti-TL1A therapy targeting ulcerative colitis and Crohn's disease. The asset is currently in Phase 2b clinical trials.

As per the agreement, Teva will receive an upfront payment of EUR469m (USD500m) and up to EUR940m (USD1bn) in development and launch milestones. Development costs, net profits and losses will be shared equally globally, with Sanofi leading the Phase 3 program's development. Commercialisation responsibilities will be divided, with Teva leading in Europe, Israel and specified countries, while Sanofi leads in North America, Japan, Asia and the rest of the world. The collaboration is pending customary closing conditions, with initial program results expected in 2024.

Inflammatory bowel disease (IBD), comprising Crohn's disease and ulcerative colitis, affects approximately 10 million people globally. This collaboration aligns with Sanofi's immunology strategy, exploring novel mechanisms for chronic inflammatory diseases.

Sanofi has a mission to transform medicine by leveraging innovative science. Operating in over 100 countries, Sanofi focuses on delivering life-changing treatments and vaccines to millions while prioritising sustainability and social responsibility.

With a legacy of over a century, Teva Pharmaceutical Industries Ltd operates an extensive supply chain in the pharmaceutical industry. The company is committed to developing and producing medicines across a diverse therapeutic portfolio.