Teva Pharmaceutical Industries has agreed to acquire Labrys Biologics, a privately-held company focusing on the treatment of migraines, in a deal worth up to $825 million, the two companies announced Tuesday.

The transaction centers on Labrys' subcutaneous chronic and episodic migraine treatment, LBR-101, and is part of Teva’s goal to be a pain care leader by 2020. The drug was acquired by Labrys from Pfizer in 2012, and is currently in Phase IIb clinical trials. Potential peak sales could reach $2 billion to $3 billion, the companies said.

According to the agreement, Teva will acquire Labrys for a $200 million upfront cash payment, along with a potential $625 million in contingent payments upon achievement of certain pre-launch milestones.

LBR-101 joins Teva's current portfolio of pain care offerings, which include a range of investigational, approved and marketed treatments for migraine, cancer pain and chronic pain, the company said.

The deal is subject to antitrust clearance and satisfaction of other conditions before it can close, the companies warned.

The deal announcement comes a day after Teva unveiled a new organizational structure and senior leadership changes, establishing a new Global Generic Medicines group and appointing a global quality-control chief. — Kellen Owings

Subscribe to Drug Industry Daily for complete coverage of the pharmaceutical industry. Click here for more information.