Eyenovia Inc. (NASDAQ: EYEN) shares soared on Tuesday after the company announced an exclusive license agreement with Artic Vision to develop and commercialize its MicroPine for the treatment of progressive myopia and MicroLine for the treatment of presbyopia in Greater China and South Korea.

Under the terms of the agreement, Eyenovia may receive up to a total of $45.75 million in upfront payments, as well as additional payments, based on various development and regulatory milestones, including the initiation of clinical research and approvals in Greater China and South Korea, and development costs.

Additionally, Arctic Vision will purchase its supply of MicroPine and MicroLine from Eyenovia or, for such products not supplied by Eyenovia, pay Eyenovia a mid-single-digit percentage royalty on net sales of such products.

Eyenovia’s management noted that this licensing agreement with Arctic Vision grows its commercial reach to address some of the largest progressive myopia markets in the world. The deal also provides capital to further support its planned launch of MicroStat in the United States next year, as well as the ongoing development of our late stage ophthalmology pipeline.

In Asia, it is estimated that up to 50% of children in some regions are myopic, and the figure is increasing. On the other end of the spectrum, many people over the age of 40 are gradually suffering from age-related presbyopia, which is currently corrected exclusively with medical devices or surgery-based modalities. MicroPine and MicroLine have the potential to address the needs unmet by conventional eye drops and can play an important role in treating these people.

Eyenovia stock traded up about 56% to $5.73 on Tuesday, in a 52-week range of $1.11 to $6.92. The consensus price target is $11.50.

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