Aldeyra Shares Continue to Rally After AbbVie Agrees to Licensing Option
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)
Copyright (c) 2023 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Paramount Earnings: CEO Has Gone, For-Sale Sign Is Up; Good Results Would’ve Been Nice to Learn
-
After Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure