Aldeyra Therapeutics (NASDAQ:ALDX) stock is on the rise Wednesday after entering into an exclusive option agreement with AbbVie (NYSE:ABBV).
This agreement covers the option for AbbVie to acquire a co-exclusive license for the development, manufacturing and commercialization of reproxalap in the United States. It also includes an option for an exclusive license to those same rights outside of the United States.
This option agreement sets up Aldeyra to receive payments from AbbVie depending on if it exercises those options. That includes a $1 million option fee as well as an upfront payment of $100 million.
To go along with this, Aldeyra Therapeutics is eligible for milestone payments from AbbVie. That could see it gain up to $300 million in milestone payments from regulatory and commercialization actions. Aldeyra will also split profits and losses connected to reproxalap in the U.S. on a 40%/60% basis.
How This Affects ALDX Stock Today
Investors are celebrating today’s news with heavy trading of ALDX stock. As of this writing, more than 31 million shares have changed hands. For comparison, the company’s daily average trading volume is about 1.1 million shares.
ALDX stock is up 40.4% as of Wednesday morning.
There’s plenty more stock market news traders will want to dive into below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
