Teva Pharmaceutical Industries Ltd. got the OK to market and distribute Cel-Sci Corp.'s cancer drug Multikine in Israel and Turkey.

Once the drug has been approved, Vienna-based Cel-Sci (AMEX:CVM) will make the product, while the Israel-based generic pharmaceutical giant will be responsible for sales. Revenue will be split evenly between both companies.

The licensing agreement is initially restricted to the areas of head and neck cancer. Teva has the rights, subject to certain conditions, to extend the licensing agreement to include other cancers during the term of this agreement. The drug is currently thought to be useful in treating different tumor types.

Teva will participate in Cel-Sci's upcoming global Phase 3 clinical trial and fund a portion of the Phase 3 clinical study. Teva's clinical group will conduct part of the clinical study in Israel.

Last summer, Cel-Sci started constructing a manufacturing facility to produce Multikine for the trial and subsequent sale following approval. The facility is expected to be completed soon.

"We believe that Teva's expertise and knowledge in successfully conducting large pivotal clinical trials and in developing markets for large unmet medical needs will prove invaluable in maximizing Multikine's potential," said Geert Kersten, chief executive of Cel-Sci. "This agreement is consistent with our strategy to share the clinical and regulatory expenses associated with the development of Multikine while retaining rights to market Multikine in North America and Europe."

Last month, Teva expanded its U.S. operations when it agreed to acquire Barr Pharmaceuticals Inc., which owns Duramed Pharmaceuticals in Cincinnati, for $7.5 billion.