A few biopharma companies made massive runs this past week. The health care sector was in trouble over the past year, under fire from congressional hearings and politicians on the campaign trail. However things look like they could be different in 2017, with a new administration in the White House and potentially deregulation on the way. This new perspective could lead to more positive trials, U.S. Food and Drug Administration (FDA) approvals and mergers and acquisitions.
The companies 24/7 Wall St. has picked stood out from the rest making a significant move this week. We have included information about each company, as well as recent trading activity and the consensus price target.
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Eyegate Pharmaceuticals Inc. (EYEG) shares had an incredible gain on Tuesday after the company announced a licensing agreement with Valeant Pharmaceuticals International Inc. (VRX). At one point in the day shares were up over 100%. According to the deal, Eyegate has granted a subsidiary of Valeant exclusive, worldwide commercial and manufacturing rights to the Eyegate II Delivery System and EGP-437 combination product candidate for the treatment of post-operative pain and inflammation in ocular surgery patients.
Under the license agreement, Eyegate received an upfront cash payment and has the potential to receive certain development-based milestone payments, as well as additional milestone payments based on the achievement of certain cumulative and annual sales milestones. Additionally, Eyegate will receive royalties on Valeant’s net sales of the product.
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Shares of Eyegate closed Friday at $2.85, with a consensus analyst price target of $10.00 and a 52-week trading range of $1.11 to $5.10. Over the course of the week the stock was up over 60%.
Valeant shares closed Friday at $16.18. The 52-week trading range is $13.00 to $86.50, and the consensus price target is $22.39.
Trevena Inc. (TRVN) reported positive results from two late-stage clinical trials that work to treat post-surgical pain. The company intends to submit these results to the FDA for a marketing approval agreement in the fourth quarter. Previously, oliceridine was approved for a breakthrough designation by the agency.
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Although the results from the study were positive against the placebo, they actually underperformed morphine, which it expects to compete with.