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; and on securitization matters by partner Jim Fogarty, with associate Danielle Carragher.