By Robb M. Stewart

 

ObsEva SA has agreed to licence the global development, manufacturing and commercial rights for an investigational agent being evaluated as a treatment for preterm labor to women's health company Organon & Co., buoying its shares early Tuesday.

In premarket trading, the biopharmaceutical company's stock was 34% higher after ending Monday at $2.52, up 21% since the end of last year. ObsEva was 1.7% lower after closing the previous session at $29.66.

Organon said it would license rights to ebopiprant, which if approved has the potential to be a first-in-class innovation for a common and serious condition with no approved therapies for acute treatment of preterm labor in the U.S.

Under the terms of their deal, Organon said ObsEva is entitled to receive tiered double-digit royalties on commercial sales as well as up to $500 million in upfront and milestone payments, including $25 million to be paid at signing, up to $90 million in development and regulatory milestones and up to $385 million sales based milestones.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

July 27, 2021 07:13 ET (11:13 GMT)

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