Royalty Pharma plc and Teva Pharmaceuticals International GmbH, announced a collaboration to further accelerate the clinical research program for Teva?s olanzapine LAI (TEV-?749) by entering into a funding agreement of up to $125 million to offset program costs. Olanzapine LAI (TEV-?749) is a once-monthly subcutaneous long-acting injection of the atypical antipsychotic olanzapine that is currently in Phase 3 for the treatment of schizophrenia and has the potential to be the first long-acting olanzapine with a favorable safety profile. Transaction Terms: Under the agreement, Royalty Pharma will provide Teva up to $100 million to fund ongoing development costs for olanzapine LAI (TEV-?749), and Royalty Pharma and Teva have a mutual option to increase the total funding amount to $125 million.

Upon U.S. Food and Drug Administration (?FDA?) approval, Teva will pay Royalty Pharma the total amount funded over five years, as well as low to mid-single digit royalties upon commercialization. If Teva chooses not to file a New Drug Application with the FDA following positive Phase 3 study results, then Teva will pay an amount equal to 125% of the total amount funded. Teva will lead the development and commercialization of olanzapine LAI (TEV-?749) globally.