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Why Is Aldeyra Therapeutics (ALDX) Stock Up 40% Today?

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  • Aldeyra Therapeutics (ALDX) stock is climbing higher on a deal with AbbVie (ABBV).
  • That covers an exclusive option agreement for reproxalap.
  • This deal brings with it heavy trading of ALDX stock on Wednesday.
ALDX Stock - Why Is Aldeyra Therapeutics (ALDX) Stock Up 40% Today?

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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!

We’re offering up all of the hottest stock market happenings worth reading about on Wednesday! Among that is what’s happening with shares of Polestar Automotive (NASDAQ:PSNY), CRISPR Therapeutics (NASDAQ:CRSP) and WeWork (NYSE:WE) stock today. You can catch up on all of these matters 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.


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