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.
Must Read: Warren Buffett's 25 Favorite Stocks
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts