Biopharmaceutical company AbbVie (NYSE: AABV) recently revealed that it has forged a partnership with eye care solutions provider iSTAR Medical SA to develop and commercialize the latter’s minimally invasive glaucoma surgical (MIGS) device, MINIject.
Following the news, however, shares of the company declined by 1.5% to close at $147.50 in yesterday’s extended trade.
What Will the Partnership Entail?
Under the terms of the agreement, iSTAR Medical will receive a non-dilutive upfront payment of $60 million to develop and commercialize MINIject until the completion of STAR -V. STAR-V is a U.S. Premarket Approval study to enable the commercialization of MINIject in the United States.
Meanwhile, MINIject is already commercially available in select European countries.
Notably, AbbVie holds the exclusive rights to acquire iSTAR Medical and lead subsequent global development and commercialization of the MINIject device.
Management’s Commentary
Global Therapeutic Area Head of Eye Care at AbbVie, Michael Robinson, M.D said, “This alliance with iSTAR Medical is an important step as we continue to be an innovator in glaucoma by maximizing the value of interventional approaches throughout the treatment paradigm.”
Wall Street’s Take
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on nine Buys, three Holds, and one Sell. The ABBV average price target of $162.08 implies the stock has upside potential of 9.7% from current levels. Shares have gained 31.4% over the past year.
Positive Investor Sentiment
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on ABBV. Further, 3.3% of the top portfolios tracked by TipRanks, increased their exposure to ABBV stock over the past 30 days.
Key Takeaways
The global glaucoma surgery devices market is expected to grow from a mere $786 million in 2019 to a massive $8 billion in 2030. Taking this into account, this strategic alliance by AbbVie with a leading player in the segment like iSTAR Medical is expected to be beneficial for the company in the long run.
Further, the alliance is expected to bolster AbbVie eye care offerings, which include drops, sustained release implants, and stent offerings.
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