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Investing.com -- Shares of Ocugen, Inc. (NASDAQ:OCGN) climbed 11.6% following the announcement of a licensing agreement with a leading Korean pharmaceutical company for the rights to OCU400, its gene therapy for retinitis pigmentosa (RP).
The agreement stipulates that Ocugen will receive upfront license fees and near-term development milestones totaling up to $11 million. Additionally, the company is set to earn sales milestones of $1 million for every $15 million of net sales in Korea, alongside a 25% royalty on net sales of OCU400 by its Korean partner. Ocugen also retains the responsibility for manufacturing commercial supply of OCU400 under a supply agreement.
This partnership is a strategic move by Ocugen to expand the reach of its gene therapy treatment for RP, a genetic eye disease. The company’s CEO, Dr. Shankar Musunuri, emphasized the alignment of this regional licensing agreement with Ocugen’s business development strategy, which aims to partner with established companies within specific countries and regions. By doing so, Ocugen plans to treat a broader patient population while simultaneously enhancing shareholder value.
The deal is expected to be finalized within the next 60 days, as both parties work toward executing a definitive agreement. In the meantime, Ocugen continues to advance OCU400 through Phase 3 clinical development, with a projected Biologics License Application filing by mid-2026.
The potential market for OCU400 in Korea is significant, with an estimated 15,000 individuals affected by RP. The licensing agreement presents an opportunity for Ocugen’s partner to address a sizeable patient population and establish a leadership position in the Korean gene therapy space.
Investors have responded positively to the news, signaling confidence in Ocugen’s strategic partnerships and the commercial prospects of OCU400. As the company progresses toward the anticipated execution of the definitive agreement, shareholders and potential patients in Korea are likely to keep a close watch on the developments surrounding this promising gene therapy.
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