In a significant development, Aldeyra Therapeutics, a leading biotechnology company specializing in the discovery and development of innovative therapies for immune-mediated diseases, announced today that it has entered into an exclusive option agreement with AbbVie Inc. This announcement has led to a notable surge in the stock of Aldeyra Therapeutics.
At the time of this publication, Aldeyra Therapeutics Inc stock (ALDX) has witnessed a surge.
Current Price: $2.65
Change : +0.94
Change (%): (54.97%)
Volume: 49.5M
Source: Tomorrow Events Market Data
Under the terms of the option agreement, AbbVie has been granted the option to acquire a co-exclusive license for the development, manufacturing, and commercialization of reproxalap within the United States. Additionally, AbbVie holds an exclusive license for the same rights outside of the U.S. As part of this agreement, Aldeyra is set to receive a non-refundable option fee totaling $1 million, alongside an upfront payment of $100 million, minus option fees, should AbbVie choose to exercise its option.
Furthermore, in accordance with the license agreement, Aldeyra stands to gain up to $300 million in regulatory and commercial milestone payments. This sum includes a substantial $100 million milestone payment upon receiving approval from the U.S. Food and Drug Administration for reproxalap’s application in the treatment of dry eye disease. Within the U.S. market, Aldeyra and AbbVie will share profits and losses from the commercialization of reproxalap in a split of 60% for AbbVie and 40% for Aldeyra. Outside of the U.S., Aldeyra is eligible to receive tiered royalties based on net sales of reproxalap.
Moreover, the exercise of this option grants AbbVie an invaluable right of first negotiation for compounds within the field of ophthalmology that are either owned or otherwise controlled by Aldeyra, specifically those targeting conditions of the ocular surface. This right of first negotiation is supplemented by the privilege to review data pertaining to any other compounds owned or controlled by Aldeyra in the realms of ophthalmology and immunology before such information is shared with any third party. Detailed terms of the option agreement can be accessed in a Current Report on Form 8-K, which has been duly filed by Aldeyra with the Securities and Exchange Commission.
In this transformative transaction, Aldeyra was advised by legal experts from Goodwin Proctor, while financial counsel was provided by Aquilo Partners, L.P. This strategic move has the potential to greatly enhance Aldeyra Therapeutics’ position in the biotechnology sector, and the partnership with AbbVie is expected to yield significant advancements in the treatment of immune-mediated diseases. The market’s favorable response with the surge in Aldeyra Therapeutics’ stock underscores the confidence and anticipation surrounding this collaborative endeavor.
