Teva Pharmaceuticals and Blackstone Life Sciences entered a $400 million funding agreement to advance the clinical development of duvakitug, an experimental treatment for inflammatory bowel disease (IBD).

Duvakitug is a human monoclonal antibody that targets TL1A, a protein believed to drive both inflammation and fibrosis in the gastrointestinal tract, and is currently in Phase III clinical trials for the treatment of ulcerative colitis (UC) and Crohn's disease (CD).¹

“Duvakitug has the potential to be a best-in-class therapy in a large and growing space, and the Teva and Sanofi teams are well positioned to develop and commercialize this important medicine,” said Paris Panayiotopoulos, senior managing director, Blackstone Life Sciences. “In line with our mission, we are delighted to partner with Teva on their Pivot to Growth strategy and to help bring duvakitug to patients as soon as possible.”

Why does this matter for IBD patients?

IBD affects approximately 4.9 million people globally, with no available cure. Current treatments aim to induce and maintain remission, but many patients cycle repeatedly through relapses.¹ Prolonged inflammation can cause fibrosis, a buildup of scar tissue in the intestinal wall that can lead to narrowing and obstruction.¹

Dr. Nicholas Galakatos, global head of Blackstone Life Sciences, cited the significant unmet need as a key driver of the investment. "Duvakitug has the potential to be a best-in-class therapy in a large and growing space," added Paris Panayiotopoulos, senior managing director at Blackstone Life Sciences.

What are the details of the agreement?

Under the four-year agreement, Blackstone Life Sciences will provide Teva with $400 million to fund ongoing and future development costs for duvakitug.¹ In return, Blackstone will be eligible for a milestone payment upon FDA approval, additional commercial milestones, and low single-digit royalties on worldwide sales.¹

Evan Lippman, executive vice president of business development at Teva, framed the deal as part of the company's broader "Pivot to Growth" strategy. "By pursuing disciplined, capital-efficient partnerships, we are accelerating pipeline advancement while maintaining financial strength," he said.

“We are excited to partner with Teva and support their innovation priorities as they advance a critical new product to patients who have significant unmet need,” said Dr. Nicholas Galakatos, global head of BXLS. “This transaction further demonstrates our focus on partnering with leading biopharmaceutical companies to execute their growth initiatives.”

Teva’s collaboration with Sanofi

Teva is also co-developing and planning to co-commercialize duvakitug with Sanofi under a separate agreement announced back in 2023², pending regulatory approval.

Teva and Sanofi’s collaboration for duvakitug includes expectations for each company to equally share development costs globally, along with the net profits and losses in major markets, with other markets subject to a royalty arrangement.²

Sanofi is expected to lead the Phase III clinical development program, while Teva will lead commercialization of the product in Europe, Israel and specified other countries.² Sanofi will lead commercialization in North America, Japan, other parts of Asia and the rest of the world.

Sources

1. Teva and Blackstone Life Sciences Announce $400 Million Strategic Growth Capital Agreement to Advance duvakitug Teva Pharmaceuticals March 3, 2026 https://www.tevapharm.com/news-and-media/latest-news/teva-and-blackstone-life-sciences-announce-$400-million-strategic-growth-capital-agreement-to-advance-duv/
2. Press Release: ECCO 2025: new duvakitug data reinforce best-in-class potential in ulcerative colitis and Crohn’s disease Sanofi February 22, 2025 https://www.sanofi.com/en/media-room/press-releases/2025/2025-02-22-07-30-00-3030764