Teva Pharmaceutical Industries Limited TEVA announced it has made a bid to acquire certain assets of BioXcel Therapeutics, including the Igalmi (dexmedetomidine) sublingual film.
Igalmi, the currently approved formulation of dexmedetomidine sublingual film, is indicated for the acute treatment of agitation associated with schizophrenia and bipolar I or II disorder in adults when administered under the supervision of a healthcare provider.
Teva has agreed to serve as the “stalking horse bidder” in a court-supervised auction process for the assets. The proposed transaction does not involve the complete acquisition of BioXcel as a whole. However, Teva would acquire the assets if it is selected as the successful bidder, subject to bankruptcy court approval, potential higher bids and customary closing conditions.
Year to date, shares of Teva have risen 16.7% compared with the industry’s rise of 6.4%.
Image Source: Zacks Investment Research
TEVA’s Potential Neuroscience Opportunity
The key asset is BXCL501, a novel, orally dissolving dexmedetomidine sublingual film that is currently under FDA review for potential at-home use in the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults. A decision from the regulatory body is expected on Nov. 14, 2026.
If approved, the product could potentially become the first FDA-approved at-home treatment for this condition, providing an option for patients outside traditional healthcare or hospital settings.
The proposed transaction would give Teva worldwide rights to the related assets, including the investigational formulation under FDA review for potential outpatient use.
What's Driving TEVA’s Interest?
Under the above agreement, Teva would pay $57.5 million upfront for the assets, with the potential for up to an additional $67.5 million in contingent payments. The additional payments include time-based payments tied to the timing of FDA approval, potential approval delays and specified sales milestones.
The proposed transaction fits Teva’s strategy of pursuing assets that offer a strategic fit, address patient needs and have the potential to generate long-term value. Management expects that, if successful, the deal would strengthen its neuroscience portfolio while maintaining a disciplined approach to capital allocation and risk.
The move underscores Teva’s ongoing focus on targeted business development as part of its Pivot to Growth strategy.
Teva recently expanded its neuroscience pipeline through the acquisition of Emalex Biosciences, adding ecopipam, an investigational therapy being developed for treating pediatric Tourette syndrome.
In August 2026, the FDA accepted the new drug application ("NDA") seeking approval for ecopipam for the treatment of pediatric patients with Tourette syndrome.
With the FDA granting priority review to the NDA, a decision from the regulatory body is expected in late first quarter of 2027. If approved, ecopipam could become the first new Tourette syndrome therapy in more than 10 years and the first novel mechanism of action in more than 50 years.
TEVA's Zacks Rank & Stocks to Consider
Teva currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are Repligen RGEN and Anika Therapeutics ANIK, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.61 during the same time. RGEN’s shares have gained 7.6% year to date.
Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.
Over the past 60 days, estimates for Anika Therapeutics’ 2026 earnings per share have risen from 41 cents to $1.05, while estimates for 2027 have increased from 46 cents to 95 cents during the same time. ANIK’s shares have surged 119.6% year to date.
Anika Therapeutics’ earnings beat estimates in each of the trailing three quarters, with the average surprise being 950.00%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report
Repligen Corporation (RGEN): Free Stock Analysis Report
Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).