pSivida shares rocket up on late-stage eye drug data

Shares of pSivida rocketed up in overnight trading after investors got wind of the late-stage success of a new ophthalmic drug the biotech is co-developing with Alimera. The company reported that Alimera is on track to file for an approval to use Iluvien to treat diabetic macular edema.

Researchers reported that both the low and high doses of the drug hit their primary endpoint in two Phase III trials. The disease is characterized by a swelling in the retina due to leaking blood vessels. The market wasted little time in responding, driving pSivida's shares up by 70 percent.

"We look forward to the continued benefits of our agreement with Alimera, including a $25 million milestone payment that would be due on approval of Iluvien, profit participation on sales of Iluvien and payment of the $15 million conditional note from Alimera," said pSivida CEO Dr. Paul Ashton. "If the note is not paid by April 2010, the annual interest rate increases to 20 percent (to be paid quarterly) and Alimera is to begin monthly principal payments of $500,000."

- check out pSivida's release
- here's the story from Reuters