OCUP - Ocuphire adds 24% as Viatris agrees to sell lead asset

Ocuphire Pharma, Inc. ( NASDAQ: OCUP ), a company focused on eye disorders, jumped ~24% pre-market Tuesday after announcing that Viatris ( NASDAQ: VTRS ) has joined hands to commercialize its lead asset Nyxol once approved.

The transaction is part of an exclusive licensing deal Ocuphire ( OCUP ) has inked with drug development company FamyGen Life Sciences, Inc. to develop and sell Nyxol for three indications in global markets, including the U.S. and Europe.

Given its global presence and the commitment to ophthalmics, “We believe Viatris provides a great opportunity for all of the Nyxol indications to realize their full commercial potential in their respective markets,” Ocuphire ( OCUP ) Chief Executive Mina Sooch remarked.

The licensing deal with Famy involves an upfront payment of $35M in cash in addition to sales-based milestone payments and double-digit royalties on worldwide net sales, extending into 2040.

Ocuphire ( OCUP ) expects $10M milestone payments from the deal in the near-term subject to FDA approval of Nyxol for reversal of mydriasis, expected later in 2023.

“….the upfront payment and development funding provided by this transaction markedly improve our cash position into 2025,” Sooch added.

On Monday, Vaitris ( VTRS ) vowed to increase its focus on ophthalmology by acquiring Oyster Point Pharma ( OYST ) for $11.00 per share in cash plus a contingent value right.

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