Ophthalmic medical technology and pharmaceutical company Glaukos Corp. (GKOS) has entered into a license agreement with Santen Pharmaceutical Co. (SNPHF).
Glaukos concentrates on therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. Santen is an ophthalmology company that focuses on the research, development, marketing and sales of ophthalmological products.
The development and commercialization license agreement, which is for PRESERFLO MicroShunt, supersedes previous agreements between the two companies. PRESERFLO MicroShunt is a drainage system to drain eye fluid and decrease intraocular pressure in patients with primary open-angle glaucoma.
The agreement grants Glaukos exclusive commercialization rights for the MicroShunt. Glaukos will gain complete control over its development activities in the U.S., Australia, New Zealand, Canada, Brazil, Mexico, and the rest of Latin America.
Santen had submitted a premarket approval (PMA) application with the U.S. Food and Drug Administration for MicroShunt in June 2020, and is in discussions with the FDA at present.
Glaukos President and CEO Thomas Burns said, “We are excited to expand our agreement with Santen for the MicroShunt, supporting our goal to bring this important late-stage glaucoma technology to ophthalmic surgeons and patients.” (See Glaukos stock analysis on TipRanks)
On May 6, Oppenheimer analyst Steven Lichtman reiterated a Buy rating on the stock and increased the price target to $105 (40.6% upside potential) from $100.
Commenting on the company’s Q1 performance, Lichtman noted that management was buoyed by recovery trends, but the ophthalmic market saw headwinds due to the COVID-19 spike.
Consensus among analysts is that Glaukos is a Hold based on 1 Buy, 3 Holds, and 1 Sell. The average analyst price target of $92.50 implies 23.8% upside potential.
Shares have gained about 108.9% over the past year.
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