25% Pop: Why Ophthotech Corp. Is Biotech's Newest Star

Ophthotech Corp  (NASDAQ: OPHT  ) shocked the market Tuesday with an incredibly strong licensing deal with big pharma Novartis (NYSE: NVS  ) . Shares surged nearly 25% higher after announcing a $1 billion deal surrounding Fovista, the company's lead drug candidate. 

Novartis will get rights for the drug outside the U.S., and beyond the cash and milestone payments, Ophthotech will receive a nearly unheard of mid 30% royalty stream. Opthotech's drug would be taken with other wet-AMD drugs like Regeneron's (NASDAQ: REGN  ) Eyelea or Lucentis, which Novartis conveniently already sells internationally.

In this episode of Market Check-Up, the Motley Fool's health-care-focused investing show, analysts David Williamson and Michael Douglass discuss the Ophthotec's slam-dunk deal, why Fovista is uniquely positioned to succeed, and ultimately why there is a lot to like about this stock. 

Will this stock be your next multibagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with amazing potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303%! You don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2965830, ~/Articles/ArticleHandler.aspx, 8/21/2014 12:39:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement