Latham & Watkins Advises on Royalty Financing Agreement of Up to US$500 Million Between Teva and Royalty Pharma

Royalty Pharma plc (Nasdaq: RPRX) and Teva Pharmaceuticals, a US affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), have announced a funding agreement of up to US$500 million to accelerate the clinical development of Teva’s anti-IL-15 antibody, TEV-'408. IL-15 is a key cytokine involved in multiple immune-mediated disease pathways. Emerging Phase 1b data from the ongoing TEV-‘408 vitiligo study provides preliminary support for IL-15 as a potential therapeutic target to treat a broad variety of autoimmune conditions. Teva anticipates sharing results from TEV-‘408 trials during 2026. If approved and launched, Teva will pay a milestone to Royalty Pharma and a royalty on worldwide net sales of TEV-’408.

Latham & Watkins advised on the transaction with a corporate team led by partners Haim Zaltzman and Todd Trattner, with associate Hyunji Lee and assistance from Dominick Gambino. Advice was also provided on tax matters by partner Eric Cho with associate Jeremiah Cowen; and on securitization matters by partner Jim Fogarty, with associate Danielle Carragher.