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Ophthotech jumps on Novartis deal

May 20, 2014 12:56 AM UTC

Ophthotech Corp. (NASDAQ:OPHT) jumped $7.54 (24%) to $39 in early after-hours trading after granting Novartis AG (NYSE:NVS; SIX:NOVN) exclusive, ex-U.S. rights to develop and commercialize Fovista, which is in Phase III testing to treat wet age-related macular degeneration (AMD). Ophthotech, which retains sole commercialization rights in the U.S., will receive $200 million in cash up front. The company is also eligible for up to $830 million in milestones, plus mid-30% royalties on Fovista sales. The milestones include $130 million tied to enrollment of an ongoing Phase III trial of Fovista to treat wet AMD in combination with anti-VEGFs. Top-line data from the trial are expected in 2016. Fovista is a pegylated aptamer against platelet derived growth factor B ( PDGFB; PDGF2).

Novartis is responsible for other clinical trials and costs for ex-U.S. approvals, including a development program in Asia. The pharma and Ophthotech also will develop a co-formulation of Fovista with a Novartis anti-VEGF drug in a pre-filled syringe. Ophthotech received options to acquire U.S. commercialization rights for the co-formulated product. Ophthotech will be eligible for royalties of "approximately equal value" to the Fovista royalties on sales of a co-formulated product. ...