Under the agreement, AbbVie will have the option to purchase a co-exclusive license to develop, produce, and market Reproxalap in the US as well as an exclusive license to do so outside of the country
Reproxalap is a small-molecule modulator of RASP. (Credit: Vanessa Bumbeers on Unsplash)
Biotechnology company Aldeyra Therapeutics has signed an option agreement with US-based AbbVie for a licence to develop and commercialise Reproxalap.
Aldeyra Therapeutics is engaged in the discovery and development of therapies designed for the treatment of immune-mediated diseases.
Reproxalap is a small-molecule modulator of RASP (reactive aldehyde species), which is found to increase in ocular and systemic inflammatory disease.
According to the terms of the option agreement, AbbVie will have the option to purchase a co-exclusive licence to develop, produce, and market Reproxalap in the US as well as an exclusive licence to do so outside of the country.
If the pharmaceutical company decides to exercise the option, Aldeyra will get an upfront payment of $100m less option fees, along with a $1m non-refundable option fee.
Under the terms of the licence agreement, AbbVie and Aldeyra would split profits and losses, in a 60:40 ratio respectively, from the commercialisation of Reproxalap.
In addition, the biotechnology company would be eligible to receive tiered royalties on net sales of Reproxalap in markets outside of the US.
Aldeyra would also be eligible to receive up to $300m in regulatory and commercial milestone payments, including a $100m milestone payment upon the US Food and Drug Administration’s approval of Reproxalap in dry eye disease.
Additionally, if the option is exercised, AbbVie will have the first say in any negotiations for Aldeyra-owned or otherwise controlled medicines used in ophthalmology to treat diseases of the ocular surface.
In addition to the right of first negotiation, the biotechnology company also has the right to examine data for any additional substances it owns or otherwise controls in the immunology and ophthalmology domains before sharing it with any other third party.
Aldeyra received legal advice from Goodwin Proctor and financial advice from Aquilo Partners on the deal.