Deal With Regeneron Means Validation For Ocular Therapeutix - Regeneron Pharmaceuticals (NASDAQ:REGN), Ocular Therapeutix (NASDAQ:OCUL)

Following a strategic collaboration, option and license agreement

Ocular Therapeutix Inc OCUL

announced with

Regeneron Pharmaceuticals IncREGN

, BTIG said the deal provides external validation for the former's platform technology. The deduction is based on the fact that Regeneron is the leader in the ophthalmology space.

Analyst Ling Wang noted that the agreement is for developing a sustained release formulation of aflibercept for the treatment of wet age-related macular degeneration. Ocular Therapeutix stands to gain $10 million from Regeneron upon exercising the option along with milestone payments of up to $350 million and royalties on potential future product sales.

BTIG sees the deal terms as favorable, given the potential for large upside with a back-end loaded structure.

BTIG has a Buy rating and a $18 price target on the shares of Ocular Therapeutix.

At the time of writing, shares of Ocular Therapeutix were up 15.37 percent at $7.28, and those of Regeneron were up 1.19 percent at $377.90.

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