ObsEva jumps on licensing deal with Organon for preterm labor drug

Obseva SA

27/07/2021 11:55

** U.S.-listed shares of Swiss drug developer  OBSV.O  soar
26.5% to $3.44 premarket - stock among the top gainers across
U.S. exchanges 
    ** Co says it would license the rights to develop and sell
its experimental drug ebopiprant to Organon & Co  OGN.N  for
$500 mln in upfront payments  urn:newsml:reuters.com:*:nGNX223lnj
    ** ObsEva is also eligible to receive $25 mln to be paid at
signing, up to $90 mln in development and regulatory milestones
and up to $385 mln in sales-based milestone payments
    ** The drug is being tested as a potential drug for preterm
labor by reducing inflammation and uterine contractions 
    ** Merck & Co Inc  MRK.N  completed the spin-off of Organon,
which includes some of its assets including women's health
drugs, in June this year
    ** OBSV shares have risen ~21% YTD 

 (Reporting by Manas Mishra in Bengaluru)
 ((Manas.Mishra@thomsonreuters.com;
www.twitter.com/Manasmishra24))