NEW YORK (TheStreet) -- Shares of pSivida  (PSDV)  soared 10.26% to $4.73 in after-hours trading Friday after the FDA approved the company'seye implant Iluvien.

The FDA approved Iluvien to treat diabetic macular edema (DME), a swelling on the back of the retina that can cause blindness should the condition become severe enough. Iluvien is an injectable implant, and its use involves placing a small cylindrical tube filled with a drug on the back of the eye where DME usually forms.

pSivida announced the FDA approval entitles it to receive a milestone payment of $25 million from Alimera Sciences (ALIM) - Get Report , to which pSivida licensed Iluvien in February 2005. pSivida is also entitled to 20% of net profits from U.S. sales of Iluvien, which the company said should debut in early 2015.

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Iluvien is already approved in 10 European countries, including the U.K., France and Germany.

Alimera also surged 18.78% to $5.85 in after-hours trading.

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