Benzinga | Jul 27, 2021 06:26AM EDT

ObsEva Stock Surges On Potential $500M Ebopiprant Deal For Preterm Labor

* Organon & Co (NYSE:OGN) will license the global development, manufacturing, and commercial rights to ObsEva SA's (NASDAQ:OBSV) ebopiprant (OBE022) for preterm labor.

* Ebopiprant is a selective prostaglandin F2? (PGF2?) receptor antagonist being evaluated as a potential treatment for preterm labor by reducing inflammation and uterine contractions.

* Under the terms of the agreement, ObsEva will receive tiered double-digit royalties on commercial sales and up to $500 million in upfront and milestone payments.

* Organon will pay $25 million at signing, up to $90 million in development and regulatory milestones, and up to $385 million in sales-based milestones.

* Goldman Sachs acted as an exclusive financial advisor to ObsEva.

* Price Action: OBSV shares are up 28.2% at $3.23 during the premarket session on the last check Tuesday, while OGN shares closed at $29.66 on Monday.