Teva Pharmaceuticals and Royalty Pharma announced on Sunday a funding agreement of up to $500 million to accelerate development of TEV-’408, Teva’s experimental treatment targeting autoimmune diseases including vitiligo.
Under the agreement, Royalty Pharma will initially provide $75 million to support a Phase 2b trial of TEV-’408 for vitiligo, expected to begin in 2026. Pending trial results, Royalty Pharma may invest an additional $425 million to co-fund a Phase 3 program. If approved, Teva will pay Royalty Pharma milestone payments and royalties on global sales.
TEV-’408 is a monoclonal antibody designed to block interleukin-15 (IL-15), a cytokine involved in multiple immune-mediated conditions. The treatment is currently in Phase 1b trials for vitiligo and Phase 2a trials for celiac disease. It received Fast Track designation from the U.S. Food and Drug Administration in May 2025.
Preliminary trial data support IL-15 as a promising therapeutic target for autoimmune disorders. Vitiligo, a chronic skin condition causing loss of pigmentation, affects 0.5% to 2% of the global population and currently has only one approved topical therapy with limited application.
“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 emphasized the need for improved treatments: “Vitiligo is a chronic autoimmune skin disease that can have a profound emotional and psychosocial burden, yet current treatment options are insufficient.”
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a key funder of late-stage drug development. Teva, a global pharmaceutical company based in Israel, is expanding its biopharmaceutical pipeline while continuing its generics leadership.
Meanwhile, Teva Pharmaceuticals is scheduled to present its growth strategy and recent milestones at the 44th Annual J.P. Morgan Healthcare Conference on Jan. 13, 2026. Francis is expected to outline the company’s progress under its “Pivot to Growth” strategy, highlighting both financial performance and pipeline advancements.
The presentation will spotlight Teva’s key innovative therapies, including AUSTEDO®, AJOVY® and UZEDY®, as well as clinical assets such as olanzapine LAI, DARI (ICS/SABA), duvakitug (anti-TL1A), emrusolmin and anti-IL-15 (TEV-’408). These assets are positioned to support Teva’s transformation into a leading biopharmaceutical company.
Teva projects 2025 revenues of $16.8–$17.0 billion, adjusted EBITDA of $4.8–$5.0 billion, and free cash flow between $1.6 and $1.9 billion. Looking ahead, the company aims for over $2.7 billion in free cash flow by 2027 and more than $3.5 billion by 2030, while maintaining net leverage below 2x.
The company will also reaffirm its long-term financial targets and commitment to disciplined capital allocation and innovation-driven growth.
A live webcast of the presentation will be available via Teva’s Investor Relations site. An archived version will remain accessible for 30 days.