Eleven Biotherapeutics says it’s in line for $22.5 million from partner Roche after an experimental eye treatment that the companies have partnered on hit a key early milestone that puts it on the path to starting clinical trials.
In June, Eleven (NASDAQ: EBIO) licensed EBI-031, a drug it’s been developing for eye diseases like diabetic macular edema and uveitis, to Swiss pharma giant Roche for $7.5 million upfront and another $22.5 million for getting the OK for clinical trials before Sept. 15. (Had the designation come after that, the deal would have earned it $2.5 million less.)
Roche has worldwide rights to develop and commercialize the drug, and Eleven could make as much as $265 million in from the deal, depending on the milestones. Eleven indicated that the majority of its shareholders still need to approve the licensing agreement in order for the company to gain the $22.5 million payment. An Eleven spokeswoman hasn’t responded to a request for comment.
The company has hit a few bumps in the road in the months after its initial public offering in February 2014. That includes two failed tests for its former lead candidate, isunakinra. Eleven has been working with an investment bank since 2015 on developing partnerships.
Eleven’s stock rose 42 percent to $2.79 per share in premarket trading as of 8:19 a.m. on the East Coast Friday.
You can read more about Eleven’s other deals and founding in this Xconomy profile.