Teva Pharmaceuticals said Wednesday it has acquired Emalex Biosciences, a company developing a treatment for Tourette syndrome in children, in a deal worth up to $900 million.
Teva will pay $700 million in cash immediately and up to another $200 million later, subject to performance milestones. The move marks Teva’s first acquisition in about a decade, after its $40 billion purchase of Allergan’s generic drug business, a deal widely seen as a failure due to the heavy debt burden it created.
Emalex’s treatment has been granted orphan drug designation by U.S. health authorities, placing it on an accelerated regulatory pathway for relatively rare conditions. Teva said it will finance the acquisition from its existing cash resources.
Richard Francis, president and CEO of Teva, said the deal reflects the company’s “Pivot to Growth” strategy.
“There is a real medical need in Tourette syndrome, and families deserve additional treatment options that help control symptoms,” Francis said. “Our deep expertise in neurology puts us in an excellent position to advance a first-in-class experimental compound.”
Separately, Teva reported first-quarter 2026 results that beat analysts’ expectations. Revenue reached about $4 billion, up 2.3% from the previous quarter. Earnings per share came in at 53 cents, 7 cents above forecasts, while net profit totaled $369 million, compared with $214 million in the same period last year.
Following the results and the acquisition announcement, Teva shares rose about 7% in trading on the Tel Aviv Stock Exchange.