• 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 F2α (PGF2α) 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.

See more from Benzinga

• Click here for options trades from Benzinga

• Kiromic Stock Surges On Acquisition Of InSilico Solutions For Undisclosed Sum

• Universal Health Beat On Q2 Earnings, Raises FY21 Outlook, Increases Stock Buyback

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.