Galena says Teva will co-develop NeuVax in Israel

NEW YORK (AP) -- Galena Biopharma Inc. said Tuesday that Teva Pharmaceutical Industries Ltd., one of the world's largest drugmakers, will develop and market its cancer treatment NeuVax in Israel.

Galena said Teva will handle the development and regulatory process in Israel and conduct at least four clinical trials of NeuVax in the country. The companies did not disclose terms of the deal, but Galena said it will receive "significant royalty payments" on sales of NeuVax if it is approved by Israeli regulators.

NeuVax is intended to induce immunity to breast cancer recurrence in certain patients. The peptide vaccine is intended for women who are not eligible for treatment with Roche's breast cancer drug Herceptin because they have lower levels of the HER-2 gene.

The Lake Oswego, Ore., company does not have any products on the market. NeuVax is its most advanced experimental drug.

Shares of Galena rose 26 cents, or 12.8 percent, to $2.30 in morning trading. Shares of Israel-based Teva picked up 20 cents to $40.75.