pSivida Corp. (NASDAQ: PSDV) is having a relatively strong start in the market this morning, and for good reason. The company made an announcement early this morning, informing investors of a new collaboration agreement it has entered into. Of course, this led to excitement among investors, causing the stock to find its way skyward. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At this point, the stock has fallen off of pre-market highs, but still seems to be holding decent gains that will likely last throughout the session. Currently (10:31), PSDV is trading at $1.25 per share after a gain of $0.03 per share (2.46%) thus far today.
PSDV Announces Collaboration Agreement
As mentioned above, pSivida Corp is having a strong day in the market today after announcing that it has entered into a collaboration agreement with Nicox S.A., an international ophthalmic company. According to the collaboration agreement, the two companies will work together to explore the potential of combining the bioerodible sustained release drug delivery system developed by PSDV with the nitric oxide-donating compounds developed by Nicox. It is hoped that the combination will lead to the development of a sustained-release drug that’s designed to reduce intraocular pressure in patients with glaucoma or ocular hypertension.
In the press release offered early this morning, it was announced that PSDV and Nicox will work together on the selection of NO-donating product candidates from the Nicox portfolio. The selection will be based on what the two companies believe will work best with the sustained-release drug technology offered up by pSivida.
From there, PSDV will be responsible for initial development activities surrounding ocular insertion formulations, and Nicox will pay an undisclosed amount of money for financial assistance of this process. The companies will then decide if they will move forward with further development, including non-clinical studies designed to generate pre-clinical data. Nicox has agreed to make additional payments to PSDV for any incremental development activities surrounding each implant formulation product candidate selected by Nicox to progress in development.
According to the collaboration agreement, any intellectual property developed through the collaboration agreement will be jointly owned. As such, the two companies will negotiate a separate license agreement for any product candidate developed under this collaboration agreement. In a statement, Nancy Lurker, President and CEO at PSDV, had the following to offer:
“Nicox’s No-donating research platform has been validated in both pre-clinical and human studies for the reduction of IOP… Combining this novel approach to IOP lowering with our bioerodible, sustained delivery device could offer a unique therapy alternative or adjunct to existing therapies to lower IOP in order to help prevent the development and progression of glaucoma.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PSDV. In particular, we’re interested in following the collaboration with Nicox and learning more about the product candidates that result from the two working together. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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