By Connor Hart

Shares of Aldeyra Therapeutics gained after the Food and Drug Administration accepted the company's resubmitted new drug application for its treatment of dry eye disease for review.

The stock rose 11% to $4.67 in afternoon trading Monday. Shares, despite falling 12% in the last three months, are up 35% this year.

The Lexington, Mass., biotechnology company said its first-in-class drug candidate, topical ocular reproxalap, can treat the signs and symptoms of dry eye disease.

With the treatment accepted for review Aldeyra also expanded its exclusive option agreement with AbbVie. The agreement, which the companies entered into in October 2023, provides AbbVie with the option to obtain a co-exclusive license to develop, manufacture and commercialize reproxalap in the U.S., Aldeyra said.

Under the agreement, AbbVie would make an upfront payment of $100 million to Aldeyra, minus $6 million in previously paid option fees. Aldeyra would also be eligible to receive up to $300 million in regulatory and commercial milestone payments, including a $100 million payment due if FDA approval for the treatment is granted.

As part of the option agreement's expansion, Aldeyra will also initiate certain pre-commercial activities, 60% of which will be paid for by AbbVie and 40% by Aldeyra if the option is exercised, the company said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 18, 2024 15:05 ET (20:05 GMT)

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