Ropes & Gray Advised Teva Pharmaceuticals in Proposed Acquisition of Novel Neuroscience Asset from BioXcel Therapeutics

Ropes & Gray represented Teva Pharmaceuticals in its proposed acquisition of certain neuroscience assets from BioXcel Therapeutics, Inc. The transaction was announced on August 28.

Teva is acquiring the assets out of BioxCel’s chapter 11 bankruptcy proceedings. Teva is serving as the “stalking horse bidder” in the court-supervised sale process. Under the terms of the agreement, Teva would acquire worldwide rights to dexmedetomidine sublingual film—a novel, orally dissolving formulation currently under FDA review for at-home use in the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults—for an upfront payment of $57.5 million and up to an additional $67.5 million in contingent payments tied to FDA approval timing and sales milestones.

The proposed asset includes IGALMI® (dexmedetomidine sublingual film), which is currently approved for in-clinic acute treatment of agitation associated with schizophrenia and bipolar I or II disorder in adults, and BXCL501. If approved, BXCL501 could become the first FDA-approved at-home treatment for this condition.

The Ropes & Gray team included mergers & acquisitions partner Chris Comeau and counsel Kelly Finn, life sciences licensing partner Abby Gregor, business restructuring partners Andrew Mordkoff and Rachel Strickland, and health care partner Jamie Darch.