pSivida Corp. (NASDAQ:PSDV)
pSivida Corp. (NASDAQ:PSDV) was unchanged in Friday’s trading session, days after announcing a strategic collaboration with Nicox S.A. The collaboration seeks to enhance the development of a sustained-release drug that can lower intraocular pressure in patients with glaucoma or Ocular Hypertension.
PSDV Stock Performance
pSivida Corp. (NASDAQ:PSDV) shares are currently trading near all-time lows, the stock having been under immense selling pressure since June. Over the past four months, the stock has shed more than 50% in market value as it continues to trade in a downtrend. The company has since turned to strategic collaboration as it seeks to reinvigorate its prospects.
Pursuant to the agreement, the two companies are to collaborate in the selection of NO-donating products from Nicox’s research portfolio, which are to be combined with pSivida’s sustained release drug technology.
“Combining this novel approach to IOP lowering with our bio erodible, a sustained delivery device could offer a unique therapy alternative or adjunct to existing therapies to lower IOP in order to help prevent the development and progression of glaucoma,” said CEO, Nancy Lurker.
pSivida Corp. (NASDAQ:PSDV) has the responsibility of taking care of initial development activities of ocular insert formulations, for which it will receive undisclosed payments from Nicox. Under the terms of the agreement, the two companies may proceed with further development including non-clinical studies needed to generate pre-clinical data.
Nicox is to cater for any expenses that arise from incremental development activities for each product selected to progress into development. The two will negotiate a license agreement for any product that comes out of the collaboration.
In addition, pSivida Corp. (NASDAQ:PSDV) has signed an agreement with a major pharmaceutical company for the development of two glaucoma drugs using its proprietary release technology. Under the terms of the agreement, the company is to receive, upfront payments of $750,000 for initial development. Additional payment totaling $200,000 could come into play depending on certain milestones.
“A key focus for pSivida during 2017 is to expand the number of development collaboration agreements with other drug manufacturers and this is the second such agreement during 2017. This agreement extends the strong working relationship between the two organizations,” Lurker in a statement.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.