Julie Lamb, Senior Editor

About the Author Julie Lamb, Senior Editor

Julie joined Smarter Analyst across the world- all the way from Louisville, Kentucky- where she graduated with a Bachelor of Arts in English with a focus on creative writing from the University of Louisville.

Stock Market’s Bulls and Bears: Eyegate Pharmaceuticals Inc (EYEG), DryShips Inc. (DRYS)

In looking at today’s take on the bulls and the bears a.k.a. the hefty needle-movers out on the Street today, we explore what sent Eyegate Pharmaceuticals Inc (NASDAQ:EYEG) investors to throw a bullish parade today and conversely, what sent DryShips Inc. (NASDAQ:DRYS) investors running for the hills. Let’s dive in:

Eyegate Teams Up with Valeant for Exclusive, Worldwide Collaboration

Eyegate shares are rising nearly 124% on the heels of today’s announcement that the specialty pharma company has joined forces with Valeant Pharmaceuticals Intl Inc (NYSE:VRX) in an exclusive, global licensing deal.

The terms: Under the worldwide agreement, EYEG has provided a VRX subsidiary set manufacturing rights to the EyeGate Delivery System as well as the biotech firm’s combination treatment for post-operative pain as well as inflammation in ocular surgery patients.

In fact, it is not the first agreement between the two companies, as this alliance proceeds as a sequel to EYEG’s agreement with VRX in 2015, where VRX established exclusive, global licensing rights for its subsidiary to this exact product for uveitis, an inflammation of the eye.

VRX CEO and Chairman Joseph Papa adds to the excited chatter today circling the deal, opining, “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.”

Moreover, “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,” continues Papa.

From the eyes of EYEG President and CEO Steph From, “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.”

Considering there are roughly 3 million patients in the United States every year who undergo cataract surgery, From anticipates this treatment will be an advantage to a substantial addressable patient population, which brings positive tidings to the firm on both a clinical as well as commercial standpoint.

According to the terms of the agreement, Valeant has offered an upfront cash payment to EyeGate coupled with the potential to gain particular development-based as well as other milestone payments. Also, the biotech firm will see royalties from VRX’s product’s net sales.

DryShips Takes a Hit Amid Dilution Fears

DryShips shares are tanking 26% after the Greece-shipping company made waves revealing Friday it has initiated an agreement with Kalani Investments Limited. Why are investors scrambling in the opposite direction amid the Prospectus Supplement? The agreement involves a chance that DRYS could sell up to $200 million of its common stock to Kalani throughout the next two years, abiding by specific limitations.

Furthermore, DRYS has offered to issue up to $1.5 million of its common stock to Kalani in terms of a commitment fee to seal the deal. Essentially, the arrangement has left those on the Street wondering whether the stock stands to face massive dilution in the process. However, investors will have to wait to see what price DRYS sets per share to assess the true dilutive effects.

Additionally, the company announced today of a forthcoming acquisition of two modern tanker vessels, DRYS’ first steps back into the tanker market. The delivery is anticipated by the second quarter of this year.

The total gross price for these tanker vessels is set to circle $102.5 million. DRYS has set its eyes on one 113,644 dwt aframax tanker and one 320,105 dwt, which is a considerably large crude carrier.

DRYS Chairman and CEO George Economou takes this under positive stride, noting, “We are very excited to have re-entered the tanker market by acquiring a modern Aframax tanker of eco-design and one Very Large Crude Carrier at historical low prices. We continue to look at opportunities to diversify and grow our fleet with high quality tonnage and significant operating leverage.” Yet, the news was not enough to save the stock today from Friday’s reveal that has rippled and sent the stock crashing.

DRYS Chart

  • mrmr23

    so are you saying you like the Eyegate deal with VRX? I see an ATM offering so please elaborate