Aldeyra Shares Rally After AbbVie Licensing Deal on Eye Drug
November 01 2023 - 8:48AM
Dow Jones News
By Rob Curran
Aldeyra Therapeutics shares rose after the development-stage
biotech company struck a licensing deal with drug giant AbbVie on
an eye-condition drug.
Shares of Aldeyra rose 26% to $2.16 in premarket trading.
Aldeyra will receive a $100 million up-front payment, less
option fees, and up to an additional $300 million in milestone
payments, based on development and regulatory approval goals for
the reproxalap product. That would include a $100 million payment
if reproxalap receives Food and Drug Administration approval for
treatment of dry-eye disease.
AbbVie will gain joint rights to market the drug in the U.S.,
and exclusive rights overseas.
In the U.S., there would be a 60-40 profit-sharing arrangement,
with AbbVie getting the larger cut, and taking the same proportion
of any losses. In overseas markets, Aldeyra would receive tiered
royalties.
AbbVie would also receive the right of first negotiation for any
other ophthalmological products developed by Aldeyra related to the
ocular surface.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
November 01, 2023 08:33 ET (12:33 GMT)
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