Published on 14/10/2016 – www.stockmarketdaily.co, follow us on Twitter for latest update @SMDailyCo
Ocular Therapeutics Soared 15% On Thursday: Here’s Why
Shares of Ocular Therapeutix (NASDAQ: OCUL), a biopharmaceutical company that focuses on the development of therapies for diseases and conditions of the eye, saw its stock shoot higher by more than 15 percent on Thursday.
Ocular Therapeutix provided an update
Ocular Therapeutix provided an update on Thursday to its development strategy concerning its sustained release intravitreal depot technology which is used to treat serious retinal diseases.
As part of its development strategy, Ocular said that it entered into a new strategic collaboration, option and license agreement with Regeneron Pharmaceuticals (NASDAQ: REGN), a much larger biopharmaceutical peer that also focuses on the treatment of therapies for eye diseases.
The agreement between the two companies involves the development of a sustained release formulation of Regeneron’s VEGF trap, aflibercept, which is used for the treatment of we age-related macular degeneration and other retinal diseases.
Regeneron’s therapy already received the approval of the U.S. Food and Drug Administration (FDA) for certain indications under the EYLEA brand.
The agreement also grants Ocular the right to continue developing its own sustained-release hydrogel-based drug delivery platform for other retinal diseases.
In addition, Ocular will receive a cash payment of $10 million from Regeneron upon exercising the option. Ocular will be responsible for handling the financing for the therapy’s development through Phase 1 and Regeneron would handle any subsequent development and commercialization costs.
Moreover, Ocular will be eligible to receive up to $305 million in milestone payments for Regeneron, comprised of up to $155 million in development and regulatory milestone payments, $100 million for the first commercial sale and up to $50 million in commercial milestone payments. Following that, Ocular would also be entitled to receive tiered high single-digit to low-to-mid teen-digit royalties on all potential future net sales.
In preclinical studies completed to date, we have demonstrated up to 6 months of sustained release of anti-VEGF drugs using our hydrogel-based drug delivery technology with a good safety profile,” stated Dr. Jon Talamo, Chief Medical Officer of Ocular Therapeutic. “A 4-6-month sustained release formulation has the potential to advance the current standard of care in wet AMD and other retinal diseases by significantly reducing injection frequency. We have also demonstrated minimal inflammatory response in vivo through 26 weeks with both our anti-VEGF protein and TKI depots currently in development. This technology represents an exciting development in the field of ophthalmology and we look forward to further advancing these programs.