Andromeda reacquires DiaPep277 rights from Teva

Andromeda Biotech Ltd. (Yavne, Israel) will pay Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) about $72 million to reacquire exclusive, worldwide rights to commercialize DiaPep277. The payment also will cover the purchase of Teva's undisclosed equity stake in Andromeda, which granted Teva commercialization rights to DiaPep277 in 2009.

DiaPep277, a peptide composed of 24 amino acids derived from the sequence of heat shock protein 60 (Hsp60), is in Phase III testing for Type I diabetes. In a February 2013 SEC filing, Teva disclosed that it "had decided not to market" DiaPep277 and was working with Andromeda to find a new partner. Teva said DiaPep277 was not "strategically aligned" with the company's areas of focus. ...