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. 

David Williamson owns shares of Johnson & Johnson, Merck, and Novartis. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.