Why Ophthotech (OPHT) Stock Is Surging Today

NEW YORK (TheStreet) -- Ophthotech  (OPHT) 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The stock was up 20.98% to $38.06 at 11:30 a.m.

OPHT Chart

OPHT data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

If you liked this article you might like

Biotech movers: CEL-SCI Leaps After FDA Lets Cancer Study Move Forward

These 5 Stocks Under $10 Could Make You a Lot of Money

Learn to Shift Gears in Your Trading

Dow Posts Another Record Close but Nasdaq Slips Amid Tech Declines

Dow Sets Record as Oil Settles Higher but Nasdaq Slips Amid Tech Declines