Allergan Inc. said Wednesday it will license a potential eye-disorder drug from Molecular Partners AG in a deal that could be worth more than $420 million.
The companies said the drug candidate, which is called MP0112, is being studied as a treatment for the retinal diseases diabetic macular edema and "wet" age-related macular degeneration. Both disorders are common causes of impaired vision and blindness.
Allergan said it will pay Molecular Partners $45 million upfront in the deal. It could make up to $375 million in additional payments based on developmental, regulatory and sales milestones.
Molecular Partners will also receive double-digit royalties on sales if the drug is approved. The Swiss company is licensing MP0112 to Allergan only for eye uses.
Allergan also reported its first-quarter results on Wednesday. Its adjusted profit and revenue both surpassed Wall Street estimates, and the company raised its guidance for the full year.
On a down day for the stock market, Allergan shares rose $2.36, or 3 percent, to $81.34.