Ophthotech Reaches $50M Milestone In Novartis Fovista Deal

Ophthotech Corporation, a biopharmaceutical company specializing in eye treatments, reported that it has achieved a $50 million milestone in its ex-US licensing and commercialization agreement with Novartis for Fovista, a drug being developed in a Phase III program for the treatment of wet age-related macular degeneration (AMD).

Fovista is Ophthotech’s anti-platelet-derived growth factor (PDGF) compound under investigation in combination with anti-vascular endothelial growth factor (VEGF) therapy for wet AMD. As part of the agreement signed with Ophthotech this May, Novartis acquired exclusive rights to market Fovista in territories outside the U.S., while Ophthotech retained rights in the U.S. The milestone payment is triggered by Ophthotech’s first enrollment in its pivotal Phase III trial for the compound.

Age-related macular degeneration is characterized by progressive degenerative irregularities in the macula, a small area located in the center of the retina. While ‘dry’ AMD progresses slowly and causes gradual vision loss over time, ‘wet’ AMD causes sudden and significant loss of central vision in affected patients. The disease mostly affects people aged 50 years or older and is the most common cause of blindness in developed countries.

Ophthotech may receive more than $1 billion from Novartis in upfront and milestone payments exclusive of future royalties from Fovista sales outside the U.S. The company pocketed $200 million at the signing of the agreement and will be eligible for enrollment-based milestone payments of up to $130 million including the $50 million milestone the company achieved.

The Phase III program is comprised of three clinical trials to assess Fovista’s efficacy and safety as a PDGF therapy. Up to 1,866 patients will be enrolled in the three trials across more than 225 trial sites worldwide. The company said it expects initial, topline data from the trials to be released by 2016. Aside from Novartis’ anti-VEGF drugs, Ophthotech is also investigating Fovista in combination with other treatments, such as Regeneron’s Eylea and Roche’s Avastin and Lucentis.