Teva Pharmaceutical Industries and Sanofi announced on Wednesday that they have entered into a partnership to develop and market a Teva treatment (TEV'574) currently in clinical trials for the treatment of ulcerative colitis and Crohn's disease, two inflammatory bowel diseases.

Under the terms of the agreement, Teva will receive an upfront payment of 469 million euros and up to 940 million euros in milestone payments based on the achievement of development and commercialization targets.

The two companies will share worldwide development expenses, as well as net profits and losses in key markets. Royalty agreements will be set up in other markets.

(Steven Scheer, edited by Kate Entringer)