Teva Secures $400 Million from Blackstone Life Sciences to Advance Late-Stage IBD Therapy Duvakitug

New funding agreement aims to accelerate development of a potential new treatment for ulcerative colitis and Crohn’s disease.

News

Teva Pharmaceuticals has entered into a $400 million strategic funding agreement with Blackstone Life Sciences to support the development of duvakitug, an experimental therapy currently in late-stage clinical trials for inflammatory bowel disease (IBD).

The agreement, announced on March 3, 2026, will provide capital over a four-year period to help finance ongoing and future clinical development of the drug, which is being evaluated for the treatment of ulcerative colitis and Crohn’s disease.

Funding to Support Late-Stage Clinical Development

Under the terms of the agreement, funds managed by Blackstone Life Sciences will provide Teva with $400 million in staged payments over four years. The capital will be used to support continued development of duvakitug as it progresses through Phase III clinical studies.

In return, Blackstone will be eligible for regulatory milestone payments if the therapy receives approval from the U.S. Food and Drug Administration (FDA), along with additional commercial milestones and low single-digit royalties on global sales of the drug.

Commenting on the partnership, Evan Lippman, Executive Vice President of Business Development at Teva, said:

“By pursuing disciplined, capital-efficient partnerships, we are accelerating pipeline advancement while maintaining financial strength.”

He added that the approach forms part of Teva’s broader “Pivot to Growth” strategy, which aims to strengthen the company’s innovative drug pipeline while maintaining financial flexibility.

Targeting a Major Unmet Need in IBD

Duvakitug is a human monoclonal antibody targeting TL1A, a protein linked to inflammation and fibrosis in the gastrointestinal tract. Researchers believe the pathway may play a significant role in the progression of inflammatory bowel diseases.

IBD, which includes ulcerative colitis and Crohn’s disease, affects millions of patients worldwide and is characterised by chronic inflammation of the digestive tract, with symptoms such as abdominal pain, diarrhoea and weight loss.

According to Dr Nicholas Galakatos, Global Head of Blackstone Life Sciences, the partnership reflects the strong need for new treatments in the field.

“We are excited to partner with Teva and support their innovation priorities as they advance a critical new product to patients who have significant unmet need.”

Part of Broader Development Collaboration with Sanofi

Teva is developing duvakitug in collaboration with Sanofi, under a separate agreement announced in 2023 to jointly develop and potentially commercialise the therapy globally.

The therapy has shown encouraging results in Phase 2b maintenance studies, demonstrating durable efficacy in patients with ulcerative colitis and Crohn’s disease, and is now being evaluated in Phase III trials.

Paris Panayiotopoulos, Senior Managing Director at Blackstone Life Sciences, said the therapy could represent a major advancement in the field.

“Duvakitug has the potential to be a best-in-class therapy in a large and growing space.”

Growing Interest in Biopharma Financing Partnerships

The transaction reflects a broader trend of private investment firms partnering with pharmaceutical companies to support late-stage drug development, sharing both financial risk and potential commercial upside.

If approved, duvakitug could enter a rapidly expanding global market for IBD therapies, where demand continues to grow as patient numbers rise and treatment options evolve.