Ophthotech Corporation Achieves $50-Million Milestone
Ophthotech Corporation (OPHT) recently announced it has achieved a $50- million enrollment milestone payment from Novartis Pharma AG as part of the ex-US licensing and commercialization agreement between the two companies focused on the treatment of wet age-related macular degeneration (AMD). This enrollment milestone payment from Novartis was triggered as a result of Ophthotech reaching the first enrollment goal under the agreement in its pivotal, multi-national Fovista Phase III clinical program and is the first of a total of $130 million in potential enrollment-based milestones under the agreement. Fovista, Ophthotech’s anti-platelet-derived growth factor (PDGF) compound, is being studied in combination with anti-vascular endothelial growth factor (VEGF) therapy for the treatment of wet AMD.
Under the agreement signed in May 2014, Ophthotech granted Novartis exclusive rights to commercialize Fovista in markets outside the United States, with Ophthotech retaining sole rights to commercialize Fovista in the United States. Potential payments to Ophthotech under the agreement could total over $1 billion in upfront and milestone payments, not including future royalties on ex-US Fovista sales. Ophthotech received an upfront payment of $200 million upon execution of the agreement, and Fovista Phase III enrollment-based milestones could total $130 million of which $50 million has now been achieved by the company. 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. In addition, Ophthotech is entitled to receive royalties on ex-US Fovista sales. Fovista is the most advanced anti-PDGF agent in development for the treatment of wet AMD and, if approved, Ophthotech expects it to be first to market in this class of therapies for wet AMD.
In connection with the receipt of this $50-million milestone payment, the company expects to recognize approximately $40.1 million as revenue during the 3 months ended September 30, 2014. The remaining $9.9 million is expected to be deferred and recognized as revenue on a proportional performance basis through 2017.
Ophthotech is a biopharmaceutical company specializing in the development of novel therapeutics to treat diseases of the eye, with a focus on developing innovative therapies for age-related macular degeneration (AMD). Ophthotech’s most advanced product candidate, Fovista anti-PDGF therapy, is in Phase III clinical trials for use in combination with anti-VEGF drugs that represent the current standard of care for the treatment of wet AMD. Ophthotech’s second product candidate, Zimura, an inhibitor of complement factor C5, is being developed for the treatment of geographic atrophy (a form of dry AMD) and in combination with Fovista and anti-VEGF therapy for wet AMD. For more information, visit www.ophthotech.com.
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