PSivida Corp. (PSDV) and Pfizer Inc. (PFE) have revised an
agreement in order to focus solely on development of the PSivida's
glaucoma implant product.
Under the agreement, pharmaceutical company Pfizer may pay as
much as $168.8 million plus royalties to PSivida, a drug-delivery
product maker.
PSivida shares were up 1% at $3.94 in early trading. The stock
though Monday's close has fallen 21% this year despite some
positive results in trials of its other product candidate. Pfizer
shares were up 0.5% at $20.56 in early trading amid a broad market
upturn. The stock is up 18% this year.
The companies have worked together since 2007 on ophthalmic
applications.
Under the revised terms, Pfizer will make an initial payment of
$2.3 million and pSivida will have the right to develop the product
candidate--which offers long-term sustained release of a common
glaucoma treatment--through Phase II clinical trials.
Pfizer then will have the right to exercise an option for an
exclusive global license to develop and market the product in
return for a $20 million payment, double-digit royalty payments and
additional milestone payments of as much as $145.5 million.
Otherwise, pSivida will develop the product on its own or with a
partner. The company already has received about $7 million in
research and development support since it began the program with
Pfizer.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com