Galena, Teva Pharmaceutical Agree to Commercialization Deal in Israel

Biotechnology company Galena Biopharma Inc. (GALE) signed a deal with Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV) to develop and commercialize NeuVax in Israel, bringing Galena’s lead breast cancer treatment to a new market.

Galena’s shares jumped 17% premarket to $2.38. As of Monday’s close, the stock had already more than quadrupled since the start of the year.

« This agreement is the first piece of our global commercialization strategy, » Galena Chief Executive Mark Ahn said.

Under the agreement, Teva’s Israeli subsidiary will assume responsibility for regulatory registration in Israel, provide financial support for local development, and commercialize the treatment in the region. At least four Phase 3 clinical trials for NeuVax will take place in Israel.

Though specific financial terms weren’t disclosed, Galena said the agreement « allows for significant royalty payments to Galena Biopharma on future sales. »

Aegis Capital Corp. said in an investor note that Teva, as one of the world’s largest pharmaceutical firms, « represents an excellent partner for Galena. »

Write to Ben Fox Rubin at ben.rubin@dowjones.com

 

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