Novartis in up to $1 billion deal to acquire ex-US rights to Fovista

20 May 2014

Swiss pharma major Novartis (NOVN: VX) has signed a licensing and commercialization agreement with US biotech firm Ophthotech for the exclusive rights to market Fovista (anti-PDGF aptamer) outside the USA. News of the deal saw Ophthotech’s shares rocket 24% to $38.95 in after-hours trading last night.

Under the financial terms of the deal, Ophthotech could potentially receive over $1 billion in upfront and milestone payments during the course of the collaboration, not including future royalties.

Ophthotech could receive immediate payment and near-term milestones totaling up to $330 million, including an upfront fee of $200 million and Fovista Phase III enrollment-based milestones of up to $130 million;
Ophthotech is eligible to receive contingent future ex-US marketing approval milestones totaling up to $300 million and ex-US sales milestones up to $400 million; and
Ophthotech is entitled to receive royalties on ex-US Fovista sales.

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