Teva Pharmaceuticals Completes Acquisition of Novel Neuroscience Assets from BioXcel Therapeutics

Ropes & Gray represented Teva Pharmaceuticals in its acquisition of certain neuroscience assets from BioXcel Therapeutics. The completed transaction was announced on October 27.

Teva acquired the assets out of BioXcel’s Chapter 11 bankruptcy proceedings. Under the agreement, Teva acquired 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 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 counsel Kelly Finn and partner Chris Comeau, life sciences licensing partner Abby Gregor, business restructuring partners Rachel Strickland and Andrew Mordkoff, and health care partner Jamie Darch.