The agreement included upfront and milestone payments as well as royalties on sales in Israel, to be paid to BioAlliance by Teva.
Financial terms of the license agreement were kept confidential.
BioAlliance CEO Judith Greciet said the license agreement with Teva is a major step for Sitavig as it acknowledges the interest and the commercial potential of the product.
"Teva as the leading player on Israeli market is a key partner for BioAlliance and for the commercialization of Sitavig, and we look forward to build a constructive and close partnership," Greciet added.
BioAlliance Pharma developed Sitavig to treat recurrent labial herpes in immunocompetent patients presenting more than four episodes a year.
Sitavig, leveraging mucoadhesive buccal technology Lauriad, delivers high concentrations of acyclovir at the site of herpes infection.