Eyegate Pharmaceuticals Inc. (NASDAQ:EYEG)
Shares of Eyegate Pharmaceuticals Inc. (NASDAQ:EYEG) edged higher in the market after the company confirmed it had received a milestone payment from embattled drug maker Valeant Pharmaceuticals Intl Inc. (NYSE:VRX). The payment covers the company’s Eyegate II Delivery System and its EGP-437 combination product. The two companies did not specify the amount of the milestone payment.
Eyegate -Valeant Licensing Deal
The payment stems from a 2015 agreement for the manufacturing and commercialization of EGP-437. Early this year the two extended the deal to cover the use of the product on the treatment of postoperative ocular inflammation and pain resulting from ocular surgeries.
Eyegate Pharmaceuticals Inc. (NASDAQ:EYEG) stands to receive developmental and sales-based milestones amounting to $99 million as a result of the two agreements. The company is also entitled to royalty payments from Valeant on net sales of the product.
“We have made significant progress in the development of EGP-437 for the treatment of post-operative ocular inflammation and pain in ocular surgery patients since initiating our first study in this large indication last year, evidenced by this first milestone payment under the Valeant partnership in ocular surgery,” said chief executive officer, Stephen From.
Eyegate Q1 Financial Results
Eyegate Pharmaceuticals Inc. (NASDAQ:EYEG) recently reported revenues of $0.19 million for the first three months of the year. The company has attributed the first quarter revenues to U.S government grants for the development of products based on the company’s CMHA-S platform technology.
Net loss in the quarter soared to (-$2.9) million compared to a net loss of (-$2.4) million as of last year. Research and development expenses soared to highs of $1.8 million from $0.9 million as of Q1 2016. The clinical stage biopharmaceutical company attributed the increase to a rise in costs associated with the development and clinical trial of EyeGate OBG.
G&A expenses dropped to $1.3 million from $1.5 million due to a decrease in professional fees associated with the acquisition of Jade. Eyegate Pharmaceuticals Inc. (NASDAQ:EYEG) ended the quarter with cash and cash equivalents of $ 5.4 million, nearly double the $3.6 million figure from December 31, 2016. The pharmaceutical company attributed the increase to an upfront payment received from Valeant and net proceeds from the sale of shares under the ATM agreement.
Eyegate Pharmaceuticals Inc. (NASDAQ:EYEG) stock was up by 3.3% in Monday trading session – ending the day at highs of $1.88 a share. The stock has shed more than 20% in market value over the last three months.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance