Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
Even after today's surge, investors need to pay close attention to Ophthotech
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Ophthotech Corp (OPHT +0.00%) shocked the market Tuesday with an incredibly strong licensing deal with big pharma Novartis (NVS +0.00%). 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 (REGN 0.01%) 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.