Eyegate Pharma Stock Surges 11% After Receiving Valeant Milestone Payment

Eyegate Pharmaceuticals Inc. stock surged 11% in premarket trade Monday after the company said it had received its first milestone payment from Valeant Pharmaceuticals International Inc. resulting from a February licensing deal for Eyegate's EyeGate II Delivery System and its EGP-437 combination product. The delivery system is an alternative to eye drops and ocular injections, and EGP-437 is being developed for post-operative pain and inflammation in patients who have had ocular surgery. Valeant shares surged 1.6% in premarket trade. The companies did not specify the amount of the milestone payment or what it was paid specifically for. Under the agreement, Valeant paid Eyegate $4 million, with up to about $34 million for certain development and regulatory milestones and up to $65 million for certain sales-based milestones and royalties. Eyegate shares have plummeted 28.1% over the last three months and Valeant shares have dropped 17.3%, compared with a 0.8% rise in the S&P 500 .