Eyepoint Pharmaceuticals EYPT Stock News

Eyepoint Pharmaceuticals Inc (NASDAQ: EYPT) is running for the top in the market this morning, and for good reason. The company announced that it has entered into an expanded license agreement, which included a one-time payment of nearly $10 million. Here’s what’s going on:

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EYPT Stock Rockets On Expanded Agreement

In the press release, Eyepoint Pharmaceuticals said that it has expanded its exclusive license agreements with China-based Ocumension Therapeutics. The expanded agreement surrounds the development and commercialization of YUTIQ and DEXYCU in certain Asian markets.

As part of the expanded agreements, EYPT has received a one-time payment of $9.5 million for the right to commercialize both products under their own brand names in South Korea and jurisdictions across Southeast Asia. Moreover, the $9.5 million represented the full and final prepayment of all remaining development, regulatory, and commercial sale milestone payments under the original icense agreement.

In a statement, George Elston, CFO and Head of Corporate Development at EYPT, had the following to offer:

Ocumension is an important partner that shares our beliefs in the therapeutic potential of YUTIQ and DEXYCU for ocular diseases that represent growing and significant areas of unmet medical need. We are delighted to expand our partnership with Ocumension to include the broader Asian marketplace. The payment from the expanded license agreements will support our operations and the ongoing clinical development of our pipeline, including our lead candidate, EYP-1901, a potential six-month sustained delivery therapy for wet age-related macular degeneration.

This Is Big News

The news released by EYPT proved to be overwhelmingly positive. First and foremost, the expanded licensing agreement will drive $9.5 million in revenue through the upfront payment made. For a company with a market cap of around $70 million, that payment represents a value of more than 10% of the company.

Moreover, with the expanded license agreement, Ocumension Therapeutics will continue to develop and push for regulatory approval in Asian territories. If the drug is approved and commercialized, further revenue from royalties is on the way.

All in all, EYPT stock is one to watch.

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