Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries listed on the NYSE and TASE under the ticker TEVA, has announced a definitive agreement to acquire Emalex Biosciences for $700 million upfront, with the possibility of up to an additional $200 million in commercial milestone payments and royalties on global net sales of ecopipam, subject to regulatory approval.
Ecopipam is a first-in-class investigational selective dopamine D1 receptor antagonist for the treatment of pediatric Tourette syndrome, carrying FDA Orphan Drug and Fast Track designations. The Phase 3 study demonstrated statistically significant results on the primary efficacy endpoint, and the NDA submission is anticipated in the second half of 2026. If approved, ecopipam would represent a meaningfully differentiated mechanism of action from currently approved Tourette syndrome medications, which act primarily on D2 receptors.
Teva will fund the upfront payment using cash on hand and expects to mitigate the near-term margin dilutive impact of the acquisition while remaining on track to meet its 2027 financial targets. The transaction is expected to close by Q3 2026.
Emalex was created by Paragon Biosciences, which founded and funds innovative biology-based companies.
Support:
Evercore served as financial advisor and Faegre Drinker as legal advisor to Teva. Centerview Partners and PHCP served as financial advisors and Bradley Arant Boult Cummings as legal advisor to Emalex.
KEY QUOTES:
“This is a prime example of our Pivot to Growth strategy in action, advancing focused, capital-efficient agreements that expand our late-stage innovative pipeline and commercial portfolio, while delivering on our unrelenting commitment to patients. There is a real unmet need in Tourette syndrome, and families deserve additional options that can help manage symptoms while minimizing side effects.”
Richard Francis, President and Chief Executive Officer, Teva
“This moment reflects years of focused work to advance a first-in-class therapy for patients with Tourette syndrome who need better options. Teva’s global scale and neuroscience leadership position will help ecopipam reach patients as quickly and broadly as possible, which is our goal.”
Eric Messner, Chief Executive Officer, Emalex
“We built Emalex around a clear patient need and advanced ecopipam to late-stage readiness with speed and precision. Teva brings the scale and neuroscience expertise to execute globally and accelerate access for patients.”
Jeff Aronin, CEO, Paragon Biosciences and Chairman, Emalex
