A major independent equity research firm focused on micro-cap and small-cap stocks, Traders News Source released a comprehensive assessment of Eyegate Pharmaceuticals Inc (NASDAQ:EYEG) licensing deal with major biotech Valeant Pharmaceuticals Intl Inc (NYSE:VRX) in full report.
The company reported an exclusive licensing deal with Valeant on February 21, 2017. As per the terms of the licensing deal, the company will receive upfront payment of a $4 million and is eligible to get prospective development-based milestone royalties and payments on net sales of the product summing up to almost $99.0 million. Eyegate also recently bought Jade Therapeutics Inc. to cure poorly-served ophthalmic indications.
By extending the association with Valeant, Eyegate has maintained association with a reputable partner who possess the extensive capabilities to get the product to industry. With this agreement, the company will remain accountable for development expenses, but with increased financial resources, the firm can continue the advancement of EGP-437 product.
It’s worth citing that previously also the two companies have closed a deal. Valeant first closed a deal with Eyegate in 2015, with the first deal closed for the same technology, however in a different indication. Mainly, the first deal related to utilizing company’s asset, a delivery system – Eyegate II, and the advancement asset that combines with it, a drug termed EGP-437, to cure uveitis.
The latest agreement comprises the same combination of products, the drug and the delivery system, but the two will be aiming the regimen of postoperative inflammation and pain in people that have endured ocular surgery (read: cataract surgery).
The present treatment is a post-operative eye drops plan. However, following the nature of the condition, several patients that opt for cataract surgery, are elderly, and they struggle sticking to a self-administrative cure. The drug delivery system is useful for this group of patients as it permits the direct therapy mode for the treatment.