25% Pop: Why Ophthotech Corp. Is Biotech's Newest Star
Ophthotech Corp shocked the market Tuesday with an incredibly strong licensing deal with big pharma Novartis . Shares surged nearly 25% higher after announcing a $1 billion deal surrounding Fovista, the company's lead drug candidate.
Novartis will get rights for the drug outside the U.S., and beyond the cash and milestone payments, Ophthotech will receive a nearly unheard of mid 30% royalty stream. Opthotech's drug would be taken with other wet-AMD drugs like Regeneron's Eyelea or Lucentis, which Novartis conveniently already sells internationally.
In this episode of Market Check-Up, the Motley Fool's health-care-focused investing show, analysts David Williamson and Michael Douglass discuss the Ophthotec's slam-dunk deal, why Fovista is uniquely positioned to succeed, and ultimately why there is a lot to like about this stock.
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The article 25% Pop: Why Ophthotech Corp. Is Biotech's Newest Star originally appeared on Fool.com.David Williamson owns shares of Johnson & Johnson, Merck, and Novartis. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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