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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


(END) Dow Jones Newswires

November 01, 2023 14:12 ET (18:12 GMT)

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