Shares in Western Australia's biggest biotechnology stock, pSivida Ltd, have risen 7 per cent following news that its Retisert product, licensed to Bausch & Lomb, will be co-promoted in the United States by Novartis Ophthalmics.
pSivida CEO Gavin Rezos said "We believe this co-promotion deal will not only provide faster royalty growth for pSivida but also demonstrates the therapeutic value and market potential of Retisert."
Novartis Ophthalmics is a business unit of Novartis Pharmaceutical Corp.
Retisert, developed by pSivida, is the world's first intravitreal drug implant for the treatment of chronic noninfectious posterior segment uveitis, a sight threatening condition that affects an estimated 175,000 people in the United States and an estimated 800,000 people worldwide.
pSivida receives royalties from pharmaceutical company Bausch & Lomb from sales of this product which is presently priced at US$18,250 for a treatment period of 30 months and is covered by Medicare.
In their announcement today, Bausch & Lomb stated "Our collaboration with Novartis Ophthalmics will provide an expanded nationwide sales force, allowing more rapid distribution of this innovative technology to retinal specialists and their patients who are suffering from posterior segment uveitis".
Last year, pSivida signed a $140 million merger with private US drug delivery company, Control Delivery Systems.
The company's share price was up 2.5 cents at 10.30 WST to 64 cents.
