NEW YORK (TheStreet) -- Ophthotech (OPHT - Get Report) surged Tuesday after the company announced it granted the rights to market its experimental eye drug Fovista outside the U.S. to a Novartis unit.
Ophthotech announced it could earn immediate payments including upfront fees of $200 million and milestone payments of $130 million as part of the arrangement. The company also said it could get more than $1 billion in upfront and milestone payments over the life of the deal, excluding royalties on potential Fovista sales.
J.P. Morgan increased its price target on Ophthotech to $51 from $40 and reiterated its "overweight" rating in the wake of the deal. Stifel Nicolaus also increased its price target to $58 from $55 and reiterated its "buy" rating, as the firm thinks the deal strategically positions Ophthotech's Fovista drug for longer-term commercial success.
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The stock was up 20.98% to $38.06 at 11:30 a.m.