Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) shares are trading higher Wednesday after the company announced that it entered into an exclusive options agreement with AbbVie.
What To Know:
Under the terms of the option agreement, AbbVie has the option to acquire a co-exclusive license to develop, manufacture and commercialize reproxalap in the U.S. and an exclusive license to develop, manufacture and commercialize reproxalap outside the U.S. Aldeyra will receive a non-refundable option fee of $1 million and an upfront payment of $100 million. Under the terms of the license agreement, Aldeyra would be eligible to receive up to $300 million in regulatory and commercial milestone payments, inclusive of a $100 million milestone payment upon U.S. FDA approval of reproxalap in dry eye disease.
Aldeyra and AbbVie would share profits and losses from the commercialization of reproxalap according to a split of 60% for AbbVie and 40% for Aldeyra in the U.S. For markets outside the U.S., Aldeyra would be eligible to receive royalties on net sales of reproxalap.
Shares of ALDX are up on heavy trading volume after the announcement. According to data from Benzinga Pro, more than 44 million shares have been traded in the session, compared to the stock’s 100-day average of 1.086 million shares.
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ALDX Price Action: According to Benzinga Pro, Aldeyra Therapeutics shares are up 47% at $2.51 at the time of publication.
Image: Arek Socha from Pixabay
