Teva and Jiangsu Nhwa Forge Strategic Partnership to Promote Patient Access to AUSTEDO® in China
Teva Pharmaceutical Industries Ltd. forms a partnership with Jiangsu Nhwa Pharmaceutical Co., Ltd. to market and distribute AUSTEDO for neurodegenerative and movement disorders in China. AUSTEDO, a deuterated drug, targets chorea associated with Huntington’s disease and tardive dyskinesia, offering innovative treatment options. The partnership aims to enhance patient access to AUSTEDO in China's neuro-psychiatric health sector, leveraging Nhwa's expertise.
The partnership between Teva Pharmaceutical Investments Singapore Pte Ltd and Jiangsu Nhwa Pharmaceutical Co., Ltd centers around AUSTEDO, a treatment for Huntington’s disease and tardive dyskinesia. This strategic move is noteworthy as it taps into Nhwa's established presence in China's neuro-psychiatric sector. The collaboration aims to enhance the distribution and availability of AUSTEDO in a market where neurodegenerative conditions are of significant concern.
From an industry perspective, the partnership is a calculated effort to penetrate a market with a high prevalence of tardive dyskinesia among patients on long-term antipsychotic medication. China's higher-than-average TD prevalence presents a substantial opportunity for Teva to expand its footprint. Moreover, AUSTEDO's status as the first deuterated drug approved in China underscores the innovative approach Teva is taking to differentiate its product in a competitive space.
The financial implications are considerable, with AUSTEDO generating over $1.2 billion in revenues in 2023. This figure indicates robust demand and the potential for further growth through strategic market expansion. The partnership aligns with Teva's 'Pivot to Growth' strategy, which focuses on expanding its global brand presence and enhancing profitability through targeted market strategies.
Understanding the impact of Teva and Nhwa's partnership requires an analysis of the healthcare landscape in China, particularly the neuro-psychiatric sector. The partnership leverages Nhwa's expertise and commercialization capabilities, which is critical in a market where local knowledge and networks are essential for success. The collaboration could lead to improved healthcare outcomes by increasing access to innovative treatments for disorders that significantly affect patients' quality of life.
Deuterated drugs like AUSTEDO represent a novel therapeutic approach, potentially offering benefits such as reduced dosing frequency due to lower metabolism rates. This could lead to improved patient adherence and outcomes. The partnership's focus on cost-effective delivery aligns with China's healthcare reform goals, which emphasize affordability and sustainability.
For stakeholders, the long-term benefits may include strengthened market positions, enhanced brand value and the potential for increased market share in a key international market. However, challenges such as regulatory hurdles, market competition and the need for continuous innovation must be considered.
The strategic partnership's financial implications are significant, particularly given the reported revenues of AUSTEDO. The drug's performance indicates strong market demand and the potential for sustained growth. The partnership is likely to be accretive to Teva's earnings, providing a boost to its financial health and stock market performance.
Analyzing the deal from a financial standpoint, the increase in patient access and the leveraging of Nhwa's distribution network are likely to lead to increased sales volumes in China. However, investors should monitor the execution of the partnership and market uptake of AUSTEDO to assess the ongoing financial impact. Additionally, the collaboration could serve as a blueprint for Teva's expansion into other international markets, potentially leading to further revenue diversification.
It is important to note that while the partnership is poised to contribute positively to Teva's growth trajectory, the overall success will depend on various factors including market acceptance, competitive dynamics and the ability to navigate China's complex healthcare system.
02/26/2024 - 07:00 AM
SHANGHAI & TEL AVIV, Israel --(BUSINESS WIRE)--
Teva Pharmaceutical Investments Singapore Pte Ltd (TPIS), a subsidiary of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) and Jiangsu Nhwa Pharmaceutical Co., Ltd (“Nhwa”) today announced it formed a partnership for the marketing and distribution of Teva’s AUSTEDO (deutetrabenazine) for the treatment of neurodegenerative and movement disorders - chorea associated with Huntington’s disease (HD) and tardive dyskinesia (TD) in adults. The partnership intends to increase patients’ access to Teva’s AUSTEDO, leveraging Nhwa’s leadership in China’s neuro-psychiatric health sector.
“Nhwa has deep neuro-psychiatry expertise and capabilities, from research and development to commercialization,” commented Theodor Wee, General Manager of Teva Greater China. “Together, we can promote cost-effective delivery of safe, quality medicines and contribute to the sustainability of China’s healthcare system.”
Huntington’s disease is a rare and fatal neurodegenerative disorder. Chorea, one of the most striking physical manifestations of Huntington’s disease, is a neurological disorder that causes involuntary, random muscle movements. It is one of the main symptoms of the disease, occurring in up to 90% of adults living with Huntington’s disease1 .
Tardive dyskinesia is another disorder that results in repetitive and uncontrollable movements of the tongue, lips, face, trunk and extremities, affecting 20-50% of patients on long-term antipsychotic medication. For patients with schizophrenia, who are more likely to be treated with antipsychotic medication, the prevalence of TD in China is higher (36.0% ~46.5% [234 ]), than the global average (25.3% 5 ). .
“As the first deuterated drug approved in China , AUSTEDO offers an innovative treatment for chorea associated with Huntington’s disease and tardive dyskinesia in adults—debilitating disorders that directly impact daily function and quality of life,” added Sun Jiaquan, President and CEO of Nhwa.
In a deuterated drug, hydrogen atoms are replaced with deuterium, which may significantly lower metabolism rates. The deuterium technology used in AUSTEDO allows less frequent dosing for patients.
“We are committed to addressing the pressing needs of patients in China with more innovative medicines, in line with our commitment throughout our International Markets region and across the globe,” said Mark Sabag, EVP and Head of International Markets at Teva. “This partnership assists us with further growing AUSTEDO as a global leading brand, with over $1.2 billion
About AUSTEDO
AUSTEDO is the first and only vesicular monoamine transporter 2 (VMAT2) inhibitor approved by the U.S. Food and Drug Administration in adults for the treatment of tardive dyskinesia (TD) and for the treatment of chorea associated with Huntington’s disease (HD).
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a global pharmaceutical leader with a category-defying portfolio, harnessing our generics expertise and stepping up innovation to continue the momentum behind the discovery, delivery, and expanded development of modern medicine. For over 120 years, Teva's commitment to bettering health has never wavered. Today, the company’s global network of capabilities enables its ~37,000 employees across 58 markets to push the boundaries of scientific innovation and deliver quality medicines to help improve health outcomes of millions of patients every day. To learn more about how Teva is all in for better health, visit www.tevapharm.com .
About Jiangsu Nhwa Pharmaceutical
Jiangsu Nhwa Pharmaceutical Co., Ltd., founded in 1978, is a leading CNS company in China . Over the past 40 years, Nhwa is exclusively dedicated to developing innovative and differentiated pipeline in the areas of anesthesia, analgesia, psychiatry and neurology via in-house R&D and global partnership.
As a fully integrated pharmaceutical company with more than 4000 employees, Nhwa has comprehensive capabilities in research, clinical development, manufacturing and commercialization of CNS drugs. In recent years, Nhwa has further strengthened its leadership in CNS field in China by providing the services of precision diagnosis of CNS disorders (Shanghai N-yuen Biotechnology Company), and investing the largest Chinese CNS internet health platform (Happy Mood).
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully commercialize AUSTEDO in China and globally; our strategic partnership with Jiangsu Nhwa; our ability to successfully compete in the marketplace including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to sustain and focus our portfolio of generics medicines; and other factors discussed in this press release, and in our Annual Report on Form 10-K for the year ended December 31, 2023, including in the sections captioned "Risk Factors” and “Forward Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
1 Haddad MS, Cummings JL. Psychiatr Clin North Am 1997;20:791–807
2 Hui L, et al. Schizophr Res. 2017 Apr;182:104-109.
3 Uludag K, et al. Asian J Psychiatr. 2021 Dec;66:102877.
4 Liang Q, et al. J Psychiatr Res. 2022 Jul;151:181-187.
5 Carbon M, et al. J Clin Psychiatry. 2017 Mar;78(3):e264-e278
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IR
Source: Teva Pharmaceutical Industries Limited
What is the partnership about between Teva and Jiangsu Nhwa Pharmaceutical Co., Ltd.?
Teva Pharmaceutical Industries Ltd. and Jiangsu Nhwa Pharmaceutical Co., Ltd. formed a partnership to market and distribute AUSTEDO for neurodegenerative and movement disorders in China.
What disorders does AUSTEDO target?
AUSTEDO targets chorea associated with Huntington’s disease and tardive dyskinesia in adults.
What is the significance of AUSTEDO being a deuterated drug?
AUSTEDO being a deuterated drug allows for less frequent dosing for patients by replacing hydrogen atoms with deuterium, which may significantly lower metabolism rates.
What is the revenue projection for AUSTEDO in 2023?
AUSTEDO is projected to generate over $1.2 billion in revenues in 2023.
Who is the President and CEO of Nhwa?
Sun Jiaquan is the President and CEO of Nhwa.
