Foley Hoag Advises Microchips Biotech on Strategic Partnership with Teva Pharmaceutical Industries
June 18, 2015
Foley Hoag LLP recently advised Microchips Biotech, Inc. in its entering into a partnership with Teva Pharmaceutical Industries Ltd., under which the companies will explore ways to apply Microchip Biotech's implantable drug delivery device to Teva’s line of products, with the goal of enhancing clinical outcomes for patients on chronic drug therapies.
Headquartered in Lexington, Mass., Microchips Biotech, Inc. is dedicated to improving the lives of patients by revolutionizing drug delivery. Its microchip-based implant has the potential to address significant unmet needs by simplifying dosing regimens and enhancing compliance for patients who need frequent dosing or require regular injections.
Microchip’s electronic device is made up of microchip arrays that can store hundreds of therapeutic doses of drug for periods ranging from months to years. The device can be programmed to release doses at precise times on a pre-determined schedule and will have wireless control features.
Under the terms of the agreement, Microchips Biotech will receive a $35 million upfront payment from Teva in the form of an equity investment and technology access fee. The partnership will initially focus on one selected disease area, and provide Teva with the option to expand the program to several additional therapeutic areas and sensing applications that are proprietary to them. Microchips Biotech will receive development and commercial milestone payments and royalties on future product sales as programs advance. Microchips Biotech will also receive funding to develop products for any future additional indications Teva may develop.
Foley Hoag attorneys Hemmie Chang, Karen Tepichin, Michael Nelson and James Schneider assisted Microchips Biotech throughout the transaction.
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