Eleven Biotherapeutics (EBIO) Stock Skyrocketing on Eye Disease Treatment

Shares of Eleven Biotherapeutics (EBIO) are sharply higher this morning after the company announced a milestone payment given the effectiveness of a recent drug.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Eleven Biopharmaceuticals  (EBIO)  are up 39.8% to $2.74 on high trading volume this morning after the company's eye disease treatment was announced as effective.

Over 6.5 million shares of the Cambridge, MA-based biopharmaceutical company have traded hands this morning vs. the stock's average of 3.6 million shares per day.

Eleven Biopharmaceuticals announced this morning that an investigational new drug application for diabetic macular edema drug EBI-031 has become effective. The drug is now effective for protein treatments for eye diseases.

In June, Eleven entered into an exclusive license agreement with Hoffman-La Roche, a New Jersey-based drug research company, for EBI-031.

Eleven Biopharmaceuticals is now entitled to receive a $22.5 million milestone payment from the company as part of the terms of the license, with the potential to receive up to $262.5 million if regulatory, development and commercialization milestones are met.

Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D-.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: EBIO

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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