Boston, MA 05/20/2014 (wallstreetpr) – Developer of novel therapeutics, Ophthotech Corp (NASDAQ:OPHT) announced that it has struck a deal with the German-based Novartis AG (ADR) (NYSE:NVS) on licensing and commercialization of drug, Fovista, outside the U.S.
Deal on Fovista
The agreement struck between the two companies allows Ophthotech to grant exclusive rights to Novartis to commercialize Fovista, its lead product candidate, throughout the world but excluding the United States. The U.S.-based company has retained the commercialization right in the U.S.
As a result of the pact, Ophthotech will get an opportunity to receive more than $1 billion in milestone and upfront payments during the collaboration time, excluding any future royalties. The company is also entitled to get an immediate and near-term milestones payment of a maximum of $330 million. This includes $200 million upfront fee and a maximum of $130 million for Phase 3 enrollment-based for Fovista.
The deal also envisages the America-based company to earn a maximum of $300 million as contingent future marketing approval milestones, excluding the U.S. Ophthotech is also eligible to get a maximum of $400 million towards sales milestones excluding the U.S. It is also eligible for royalties on Fovista sales, excluding the United States.
Wet AMD
Wet age-related macular degeneration (AMD) is a syndrome illustrated by progressive, degenerative anomalies in the macula of the eye, which is a tiny spot in the retina’s central portion. This can be characterized into one of two regular subgroups, the dry and the wet. While dry group is non-neovascular form of the ailment, wet is exudative or neovascular form of the syndrome.
Ophthotech CEO Speaks
The company’s chairman and CEO David Guyer sees the agreement as a major accomplishment even as it continues to implement a strategy to deliver science-related retinal products. He believes that the deal with the German-based company can be regarded as transformational one for Ophthotech Corp (NASDAQ:OPHT). Aside from the financial benefit, the company stands to expand Fovista reach by putting up essential elements in place after getting necessary approvals from the regulator.
