Selling a bigger piece of the pie

More than half the proceeds that ophthalmic play Alimera Sciences Inc. hopes to raise in an IPO this week could go to partner pSivida Corp. (NASDAQ:PSDV; ASX:PVA). But the payments would fulfill a revised partnership agreement that gives a greater share of potential profits to Alimera.

Alimera licensed the Iluvien retinal insert to treat diabetic macular edema (DME) from pSivida in 2005 and then renegotiated the deal in 2008. pSivida originally would have received 50% of profits. Under the new terms, pSivida gets 20% of profits, a $15 million note and a $25 million milestone upon FDA approval of Iluvien...