By Shimrez Hyder
4:03 AM UTC
ObsEva SA (OBSV) stock prices were up by 2.02% as of the market closing on July 26th, 2021, bringing the price per share up to USD$2.52 at the end of the trading day. Subsequent premarket fluctuations saw the stock surge by 32.94%, bringing it up to USD$3.35.
July 27th 2021 saw OBSV stock announce having entered into an agreement with Organon, wherein Organon will license the global development, manufacturing, and commercial rights to ebopriprant (OBE022). The treatment is an investigational, orally active, selective prostaglandin F2α receptor antagonist that is being evaluated as a potential treatment for preterm labor. It is designed to reduce inflammation and uterine contractions. Pending approval, the treatment has the potential to be a first-in-class innovation for a problem that is widespread and serious. Currently, there are no approved therapies for the acute treatment of preterm labor in the United States.
The asset is currently in the development-stage and is being studied to address a leading unmet need for women around the world. The agreement is set to consolidate the company’s path to sustained growth over the long term as it helps build Organon’s women’s health research and development portfolio. The partners share a vision to improve the women’s health landscape around the world, hoping to revolutionize the healthcare space.
Organon is an ideal strategic partner for OBSV stock in the collaborative drive to develop and commercialize ebopriprant. Collaboration is a critical step in advancing the investigational agent. While preterm births are on the rise, no other known compounds are currently in development. For this reason, the company is focused on evaluating the treatment of a significant area of unmet need.
As per the terms of the agreement, Organon is set to acquire exclusive global rights to develop and commercialize the treatment. OBSV stock will receive compensation via tiered double-digit royalties on commercial sales, as well as up to USD$500 million paid upfront and through milestone payments. Upon signing, OBSV is set to receive USD$25 million, up to USD$90 million in development and regulatory milestones, and up to USD$385 million sales based milestones.
Armed with its expansive new strategic partnership, OBSV stock is poised to capitalize on the additional opportunities within its reach. The company is keen to leverage the resources at its disposal to drive organic growth over the long term, thereby facilitating increases in shareholder value.