Why Ocugen shares have increased 12% today
Colleagues across the Pacific have purchased rights to one of the pipeline drugs of biotechnology.
Investors on Monday Okuben (OCGN 11.68%))Biotechnology focused on ophthalmology. They traded more than 12%of the company’s shares after a new license agreement signed with Asian colleagues. 12% absolutely rose 0.5% S & P 500 Today index.
License is a deal with major Asian pharmaceuticals.
Ocugen announced that it has signed a license agreement with Kwangdong Pharmaceutical in Korea. Under these conditions, KWANGDONG will own exclusive rights throughout Korea of OCU400, an investigative drug targeting RP (Retinitis Pigmentosa). This is a disorder of the retina that causes a gradual loss of vision.
Image Source: Getty Image.
For licenses, Ocugen must pay up to $ 7.5 million in full -time fees and short -term development milestones. The medical company allows you to get a $ 1.5 million milestone for each $ 15 million sales through KWANGDONG. Ocugen said that if it is commercialized, the OCU400 can generate at least $ 180 million in sales for the first 10 years.
Lastly, US companies receive 25%of Royalty payments for Korean drug net sales.
The beginning of something big?
Ocugen’s hope for this drug shows that about 7,000 people in Korea suffer from RP. And it is the potential of a country. If this drug is successfully released to the market elsewhere, this can be the tip of the iceberg.
Eric Volkman has no location in any of the shares mentioned. MOTLEY FOOL has no location in any of the shares mentioned. The MOTLEY FOOL has a public policy.
