XEN402 is designed to treat pain by targeting sodium channels located at sensory nerve endings.
Teva Pharmaceutical Industries president and CEO Dr. Jeremy Levin said, "XEN402 fits this strategy. It holds the potential to address the significant unmet medical need for the many patients who suffer from chronic pain."
Pursuant to the deal, Xenon will earn $41m upfront payment in addition to pay development, regulatory, and sales-based milestones worth $335m and sales-based royalties from Teva.
Xenon has an option to participate in the US commercialization of the product.
Xenon president and CEO Simon Pimstone said, "This partnership with Teva is Xenon’s seventh major pharmaceutical alliance, once again highlighting the value of Xenon’s unique genetics approach and translational R&D capabilities."