Teva agrees licensing deal for Xenon pain drug

Teva has signed a collaborative development and exclusive worldwide licensing deal for XEN402, a new pain therapy from Xenon Pharmaceuticals.

The company has agreed to pay Xenon potential fees of up to $376 million (232.84 million pounds) for rights to the compound, which targets sodium channels found in sensory nerve endings that can increase in chronic painful conditions.

It is thought that the product could offer potential efficacy against a number of conditions, having already shown promise against erythromelalgia and post-herpetic neuralgia in clinical studies.

XEN402 has been identified as a strategic fit for Teva's commercial, research and development and technology focus in the fields of central nervous system and pain disorders.

Dr Jeremy Levin, president and chief executive officer of Teva Pharmaceutical Industries, said: "Teva is building a focused pipeline of novel medicines in select areas of medical need. XEN402 fits this strategy."

This comes after the company announced earlier this month that it is increasing its ownership stake in Rexahn Pharmaceuticals, in order to support the development of the anti-cancer compound RX-3117.