Teva bids $57.5M for bankrupt BioXcel assets
Teva Pharmaceuticals has been named the stalking horse bidder to acquire BioXcel Therapeutics' neuroscience portfolio for $57.5 million upfront, following
Teva Pharmaceuticals has agreed to acquire the assets of bankrupt BioXcel Therapeutics for $57.5 million upfront. The deal, revealed in Chapter 11 bankruptcy filings, could include up to $67.5 million in additional milestone payments.
BioXcel, based in Connecticut, filed for bankruptcy protection after informing investors it lacked funds to operate through August. The company secured a loan earlier in the week but pursued Chapter 11 as a lasting solution. After months of seeking a deal, BioXcel selected Teva as the stalking horse bidder, meaning Teva's offer sets the baseline valuation for an upcoming auction process.
Deal Terms and Milestones
Under the agreement, Teva would buy substantially all of BioXcel's assets. Teva has submitted a good-faith deposit of $5.7 million. The total potential payout is structured around key regulatory deadlines for BioXcel's lead drug candidate.
| Milestone Condition | Payment to BioXcel |
|---|---|
| FDA approval by Nov. 14 PDUFA date | Full $67.5 million milestone |
| FDA approval by Feb. 27 (if missed Nov. 14 date) | $55 million milestone |
| FDA approval after Feb. 27 | Smaller regulatory milestone; eligibility for sales-based payments |
The Lead Asset: BXCL501
The primary asset involved is BXCL501, an orally dissolving film formulation of dexmedetomidine. It is currently under FDA review for the at-home, acute treatment of agitation associated with bipolar disorders or schizophrenia. The agency has a Prescription Drug User Fee Act (PDUFA) target action date of November 14 to decide on approval.
The milestone payments in the Teva deal are directly contingent on the FDA's decision timeline for this drug. BioXcel stated that if approval comes by the November deadline, it will receive the full $67.5 million in milestones.
Portfolio and Strategic Fit
While BioXcel's pipeline includes the immuno-oncology candidate BXCL701, the stalking horse deal focuses on its neuroscience assets. In a statement, Teva said the acquisition could strengthen its neuroscience portfolio. The Israeli drugmaker indicated the assets align with its strategy of acquiring molecules with a clear strategic fit and long-term growth potential.
The bankruptcy process allows for other bidders to emerge during a planned auction. The Teva deal provides a floor for the asset valuation. BioXcel's financial crisis culminated in the Chapter 11 filing after weeks of warnings about its cash position.
