Why Is Retinal Diseases-Focused Opthea Stock Trading Higher Today?

Opthea Limited OPT on Wednesday said it expects to receive the remaining $35 million committed funds under the Development Funding Agreement (DFA) with Carlyle and Abingworth, and has entered into binding documentation with a new co-investor under an Amended DFA to secure an additional $50 million in funding.

Under the terms of the agreement, Carlyle and Abingworth committed $120 million, of which $85 million has been received to date. 

The remaining committed funds of $35 million and the additional $50 million announced will be received on or around December 31, 2023, bringing the total committed funding under the amended DFA to $170 million, the maximum amount allowed under the terms of the DFA.

Fred Guerard, Chief Executive Officer of Opthea Limited, commented, "We are extremely pleased with this funding that demonstrates investors' confidence in sozinibercept and its potential for future clinical, regulatory, and commercial success." 

The $85 million funding will be used to advance Opthea's Phase 3 clinical trials and pre-commercialization activities of sozinibercept for wet age-related macular degeneration (wet AMD).

Under the terms of the DFA, if sozinibercept is approved in a major market, Opthea will make a milestone payment after regulatory approval and then six subsequent annual fixed success payments and variable success payments of 7% of net sales, with cumulative payments capped at four times the amount funded to Opthea. 

Opthea retains full worldwide commercial rights for sozinibercept and can prepay its obligations in full at any time. 

Price Action: OPT shares are up 15.10% at $2.90 on the last check Wednesday.