Aldeyra Shares Continue to Rally After AbbVie Agrees to Licensing Option
November 01 2023 - 2:27PM
Dow Jones News
By Rob Curran
Aldeyra Therapeutics shares continued to rally after drug giant
AbbVie secured an option to license an eye-condition drug from the
development-stage biotech company.
Shares of Aldeyra rose 50% to $2.58 in recent trading.
Aldeyra will receive a $1 million payment from AbbVie for the
option to license the reproxalap product. If AbbVie exercises the
option, Aldeyra would receive a $100 million up-front payment, less
option fees. Aldeyra could receive up to an additional $300 million
in milestone payments, based on development and regulatory approval
goals. That includes a $100 million payment if reproxalap receives
U.S. 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 also would 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 14:12 ET (18:12 GMT)
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