Ophthotech meets $50 million enrollment milestone under Novartis agreement

Ophthotech Corporation announced in a press release that it has reached a $50 million enrollment milestone payment from Novartis Pharma.

The payment is part of the ex-U.S. licensing and commercialization agreement between the two companies with a common focus on the treatment of wet age-related macular degeneration.

Under the May 2014 agreement, Ophthotech granted Novartis exclusive rights to commercialize Fovista in markets outside the United States, with Ophthotech retaining the rights to commercialize Fovista in the United States while also retaining sole rights, according to the press release.

Novartis made an upfront payment of $200 million to Ophthotech upon execution of the agreement, and Ophthotech stands to achieve phase 3 enrollment-based milestones of up to $130 million.

Ophthotech is eligible to receive contingent future ex-U.S. marketing approval milestones of up to $300 million and ex-U.S. sales milestones up to $400 million, in addition to royalties on ex-U.S. sales.

Ophthotech said it expects to recognize approximately $40.1 million as revenue as of Sept. 30, 2014. The other $9.9 million will be considered deferred and recognized as revenue on a proportional performance basis through 2017, according to the press release.