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.-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening in the Markets This Week
-
4 Top Dividend-Paying REIT Stock Picks
-
After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?
-
P-CAPE: A Better Way for Investors to Estimate Future Returns
-
Which Stocks Have Driven the Stealth Large-Value Rally?
-
Forecasts for Q2 GDP Report Show a Healthy but Slowing Economy
-
5 Stocks to Buy as the Market Rally Broadens
-
4 Top US Travel Stock Picks
-
How Do Interest Rates Affect Stock Market Returns?
-
American Airlines Earnings: Ticket Distribution Misstep Affected Results
-
Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
3 Top Cybersecurity Stock Picks for Long-Term Investors
-
AbbVie Earnings: Firm Sees Strong Next-Generation Immunology Drugs Sales
-
Ford Earnings: Warranty Problems on Older Vehicles Slam Results
-
ServiceNow Earnings: Operating on a Higher Plane Within Enterprise Software