Eleven Biotherapeutics' Stock Rockets After Milestone Payment Announcement

Shares of Eleven Biotherapeutics Inc. rocketed 66% in premarket trade Friday, after the said it would be entitled to receive a $22.5 million milestone payment related to its eye disease treatment. The biopharmaceutical company said its investigational new drug application for EBI-031, a treatment for diabetic macular edema, has become effective, which was a milestone in a license deal the company entered with F. Hoffman-La Roche Ltd. last month. The agreement says Eleven could receive up to $262.5 million if certain regulatory, development and commercialization milestones are met. Eleven's stock had soared nearly six-fold in the past three months through Thursday, but was still down 35% year to date.