Now what : Ophthotech has locked up Novartis as their ex-U.S. partner. Under that licensing pact, Ophthotech has already received $330 million of a potential total of $1 billion in upfront money and milestones. If phase 3 results that are expected in the fourth quarter of this year are good enough to support an approval, then Ophthotech will be paid royalties in excess of 30% on ex-U.S. sales.
As a result of the global population getting older, cases of AMD are becoming more common. Fovista's agnostic approach to current anti-VEGF therapies could turn it into a billion-dollar blockbuster.
Zimura's market potential could also be big, but Zimura trial results aren't likely to be available until 2018, so investors will need to be patient.
Overall, since Fovista and Zimura could both be needle-moving drugs, investors may want to view the recent sell-off in Ophthotech's shares as a chance to add this company to portfolios. Obviously, there's a risk that Fovista and Zimura's trials fail; but if they don't, then owning shares could prove profit friendly.
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The article Why Ophthotech Corporation Shares Tumbled 31% in January originally appeared on Fool.com.
Todd Campbell owns shares of Ophthotech. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not 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 .
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