Teva to acquire Emalex in deal worth up to $900 million
The move strengthens Teva's pipeline with Tourette’s treatment and supports its “Beyond Growth” strategy.
Teva is moving deeper into neuroscience with a deal to acquire Emalex Biosciences in a transaction valued at up to $900 million, strengthening its late-stage pipeline with an experimental treatment for Tourette syndrome that has already produced positive Phase 3 results.
Under the agreement, announced Wednesday, Teva will pay $700 million in cash upon closing, with Emalex shareholders eligible for up to an additional $200 million tied to future commercial milestones, as well as royalties on global net sales of the drug candidate, ecopipam, subject to regulatory approval. The deal is expected to close by the third quarter of 2026, pending customary regulatory approvals.
The acquisition brings Teva control of ecopipam, a selective dopamine D1 receptor antagonist being developed for pediatric Tourette syndrome. In a Phase 3 study, ecopipam demonstrated statistically significant results on the primary endpoint, with a p-value of 0.0084. Teva said it expects to submit a New Drug Application in the second half of 2026.
Tourette syndrome is a neurodevelopmental disorder that begins in childhood and is characterized by involuntary motor and vocal tics. While treatments exist, many patients continue to experience inadequate symptom control or side effects, according to Teva.
“This is a prime example of our Pivot to Growth strategy in action,” said Richard Francis, Teva’s CEO. He described Tourette syndrome as an area of “real unmet need,” adding that ecopipam could offer additional options for patients while reducing side effects compared with existing approaches that primarily target D2 dopamine receptors.
Ecopipam targets D1 receptors instead, a mechanism Teva and Emalex describe as potentially addressing pathways linked to repetitive and compulsive behaviours associated with the disorder.
Emalex CEO Eric Messner said the drug’s development reflected “years of focused work” and emphasized the goal of accelerating patient access through Teva’s global scale. The company was founded by Paragon Biosciences, which focuses on building biology-based pharmaceutical ventures.
The transaction also comes as Teva continues to reposition itself toward innovative and specialty medicines. The company said it will fund the upfront payment using cash on hand and expects to offset near-term margin dilution while remaining on track to meet its 2027 financial targets.
If approved, ecopipam would enter a market where existing Tourette treatments remain limited. The drug has also received Orphan Drug and Fast Track designations from the U.S. Food and Drug Administration, reflecting both the rarity of the condition and the unmet medical need.
