Teva and Microchips Biotech Announce Partnership to Enhance Patient Outcomes through Digital Drug Delivery Technology

PRESS RELEASE

JERUSALEM

&

LEXINGTON, Mass.

--(BUSINESS WIRE)--Jun. 18, 2015--

Teva Pharmaceutical Industries Ltd.

, (NYSE: TEVA) and

Microchips Biotech, Inc.

today announced that they have entered into a partnership under which the companies will explore innovative ways to apply Microchips Biotech’s implantable drug delivery device to Teva’s portfolio of products with the goal of enhancing clinical outcomes for patients on chronic drug therapies. Microchips Biotech’s electronic device is made up of microchip arrays that can store hundreds of therapeutic doses of drug for periods ranging from months to years and releases each dose at precise times. The device can be programmed to release drug on a pre-determined schedule and will have wireless control features.

“The microchip-based implant is truly at the intersection of digital technology and medicine and the future of drug delivery for patients who cannot tolerate needles

,

require regular self-administered injections or where compliance is critical to outcomes,” stated

Michael Hayden

, MD, PhD, Teva’s President of Global R&D and Chief Scientific Officer. “At Teva we are leading innovation in medicine with promising new drugs and solutions for drug adherence to improve patient outcomes and reduce unnecessary healthcare complications.”

Under the terms of the agreement Teva will make a

$35 million

upfront payment to Microchips Biotech in the form of an equity investment and technology access fee. The partnership has an initial focus on one selected disease area, but will provide Teva with the option to later expand the program into several additional therapeutic areas and sensing applications that are proprietary to Teva. As programs advance, Microchips Biotech will receive development and commercial milestone payments and royalties on future product sales. Microchips Biotech will also receive funding to develop products for any future additional indications Teva may develop, and Teva will be responsible for Phase II and Phase III clinical development and regulatory filings. “We are thrilled to be aligned with an organization that sees the potential of our technology to transform the way medications are delivered to patients, providing the potential to increase compliance and significantly improve outcomes,” stated

Cheryl R. Blanchard

, Ph.D., Chief Executive Officer of Microchips Biotech. “This is the first of what we hope to be many partnerships with industry to leverage our technology across a broad array of therapeutic applications and disease states.”