Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and EyeGate Pharmaceuticals, Inc. (NASDAQ:EYEG) announced that they have entered into an exclusive, worldwide licensing agreement through which EyeGate has granted a subsidiary of Valeant exclusive, worldwide commercial and manufacturing rights to the EyeGate®II Delivery System and EGP-437 combination product candidate for the treatment of post-operative pain and inflammation in ocular surgery patients.

This partnership follows a 2015 agreement in which Valeant secured an exclusive worldwide license for its subsidiary to this product for uveitis. Valeant has maintained its right of last negotiation to license the product for other indications.

“We are pleased to extend our relationship with EyeGate, and to obtain the global commercial and manufacturing rights to the EyeGate II Delivery System for the indication of post-operative inflammation and pain in ocular surgery patients. We believe that the product has significant potential in the market as part of our Bausch + Lomb business and applaud EyeGate for a remarkable job in advancing the product’s development in both uveitis and cataract surgery,” said Joseph C. Papa, Chairman and CEO of Valeant. “We look forward to further supporting EyeGate as they continue their progress in bringing this product to market to meet the needs of our customers and their patients.”

“This second licensing agreement with Valeant provides an important validation of both the clinical and commercial potential of iontophoretic EGP-437. We believe that Bausch + Lomb’s sales, marketing and commercial capabilities in ophthalmology are unrivalled, making them the optimal partner to bring this unique product to market,” said Stephen From, President and Chief Executive Officer of EyeGate. “For the approximately 3 million cataract surgery patients in the U.S. each year, adherence to the post-operative therapeutic regimen is imperative. As many of these patients are older and may struggle with self-administration of corticosteroid eye drops, we believe that iontophoretic EGP-437 administered by the eye care practitioner will provide a promising new treatment in addressing the needs of this large patient population.”

Under the license agreement, EyeGate received an upfront cash payment and has the potential to receive certain development-based milestone payments, as well as additional milestone payments based on the achievement of certain cumulative and annual sales milestones. Additionally, EyeGate will receive royalties on Valeant’s net sales of the product.

EyeGate will be responsible for the continued development of the EyeGate II delivery system in the U.S. for the treatment of post-operative pain and inflammation in ocular surgery patients, and all associated costs. Valeant has the right to further develop the product outside of the U.S., at its cost. In December 2016, EyeGate reported positive top-line data from a Phase 1b/2a trial assessing iontophoretic EGP-437 in the treatment of ocular inflammation and pain in post-surgical cataract patients.Shares of Valeant Pharmaceuticals International closed last Friday at $16.04, down $-0.18 or -1.11%. VRX has a 1-year high of $86.55 and a 1-year low of $13. The stock’s 50-day moving average is $14.89 and its 200-day moving average is $20.29.

On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on February 14, RBC analyst Douglas Miehm reiterated a Hold rating on VRX, with a price target of $22, which implies an upside of 37% from current levels. Separately, on February 10, Barclays’ Douglas Tsao maintained a Hold rating on the stock and has a price target of $20.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Douglas Miehm and Douglas Tsao have a yearly average loss of 10.3% and a return of 8.9% respectively. Miehm has a success rate of 49% and is ranked #4211 out of 4490 analysts, while Tsao has a success rate of 58% and is ranked #718.

Sentiment on the street is mostly neutral on VRX stock. Out of 10 analysts who cover the stock, 6 suggest a Hold rating , 3 suggest a Sell and one recommends to Buy the stock. The 12-month average price target assigned to the stock is $17.67, which represents a potential upside of 10% from where the stock is currently trading.

Valeant Pharmaceuticals International, Inc. is a pharmaceutical company which engages in developing, manufacturing, and marketing pharmaceutical products in the areas of dermatology, eye health, neurology, and generics. It operates through the Developed Markets and Emerging Markets. The Developed Markets segment offers over-the-counter and medical products as well as alliance and contract service revenues, in the areas of dermatology and podiatry, neurology, gastrointestinal disorders, eye health, oncology and urology, dentistry, aesthetics, and women’s health. The Emerging Markets consists of branded generic pharmaceutical and branded pharmaceuticals; over-the-counter and medical device products.