Teva Pharmaceutical Industries and Royalty Pharma have signed a funding agreement valued at up to $500 million to advance the development of TEV-408, an investigational therapy for autoimmune disorders, including vitiligo. The Teva, Royalty Pharma $500M deal would be used for mid- and late-stage development of the program.
Royalty Pharma will provide $75 million upfront to support the Phase 2b trial of TEV-’408 in vitiligo, a trial that’s expected to start in 2026. Subject to the outcome of that trial, Royalty could invest an additional $425 million to fund Phase 3 development of the drug. In exchange, Teva would make milestone and royalty payments to Royalty based on global sales.
TEV-’408 is a monoclonal antibody that blocks interleukin-15 (IL-15), a pro-inflammatory cytokine that is implicated in a number of immune-mediated diseases. It is in development for the treatment of vitiligo in a Phase 1b clinical trial and for celiac disease in a Phase 2a clinical trial. In May 2025, it was granted Fast Track by the U.S. Food and Drug Administration.
There’s been early evidence from clinical trials to suggest that IL-15 may be a viable target for autoimmune diseases. Vitiligo is a chronic skin disorder that affects about 0.5% to 2% of the global population and results in a loss of pigmentation on patches of the skin. There’s only one drug approved to treat vitiligo, a topical therapy that’s not widely used.
“Strategic collaborations fuel innovation,” said Teva CEO Richard Francis. “This agreement with Royalty Pharma enables us to advance our science more efficiently and accelerate our pipeline to deliver meaningful solutions for patients worldwide.”
Royalty Pharma CEO Pablo Legorreta highlighted the unmet need in vitiligo treatment. “Vitiligo is a chronic autoimmune skin disease that can have a profound emotional and psychosocial burden, yet current treatment options are insufficient,” he said.
Royalty Pharma was established in 1996. It is the world’s largest purchaser of biopharmaceutical royalties and one of the largest investors in late-stage drug development. Teva, an Israeli company, remains focused on expanding its biopharmaceutical pipeline and continuing to lead in generics. The Teva, Royalty Pharma $500M deal reflects Teva’s broader strategy to strengthen innovation through external partnerships.
Teva will outline its growth strategy and recent achievements at the 44th Annual J.P. Morgan Healthcare Conference on Jan. 13, 2026. Francis will provide an update on Teva’s “Pivot to Growth” strategy, including financial results and pipeline development.
Teva’s presentation will showcase the company’s innovative therapies, such as AUSTEDO®, AJOVY® and UZEDY®, and pipeline programs including olanzapine LAI, DARI (ICS/SABA), duvakitug (anti-TL1A), emrusolmin and anti-IL-15 (TEV-’408). These programs will continue to support the company’s long-term strategy to transform Teva into a leading biopharmaceutical company.
Teva today announced financial guidance for 2025 and reiterated its long-term financial objectives, including its targets for free cash flow and net leverage. For 2025, Teva expects total revenues of $16.8 billion to $17.0 billion; adjusted EBITDA of $4.8 billion to $5.0 billion and free cash flow of $1.6 billion to $1.9 billion. The company also expects to generate more than $2.7 billion in free cash flow in 2027 and over $3.5 billion in 2030, while maintaining net leverage below 2x.
In addition to 2025 guidance, Teva will also reiterate its long-term financial goals and commitment to disciplined capital allocation and growth through innovation. A live webcast of the presentation will be available on Teva’s Investor Relations website. A replay will be available for 30 days.
