DARE Stock Soars 125% on Licensing Deal with Bayer

DARE stock

When a relatively small company signs a significant deal with one of the biggest companies in the world, then the former’s stock generally soars substantially. That is what happened with DARE stock this morning after Daré Bioscience, Inc. (NASDAQ:DARE) revealed that it has signed a licensing deal with Bayer (OTCPK:BAYZF), the German pharmaceutical and life sciences giant.

Important Development

According to the details of the licensing agreement, Bayer has taken up the option to commercialize Daré’s contraceptive product Ovaprenne. However, that will be dependent on the product actually getting the necessary approvals from the United States Food and Drug Administration.

As everyone knows, a licensing deal with one of the biggest pharmaceutical and life sciences companies in the world is a significant deal for Daré Biosciences.

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The company also announced that Daré could receive as much as $310 million in milestone payments through the course of the deal. In addition to that, Daré is also set to earn double-digit percentages in tiered royalties from the sales of the product.

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The market welcomed the news wholeheartedly, and DARE stock soared by as much as 125% to $1.89 this morning.

The President and Chief Executive Officer of Daré Biosciences, Sabrina Martucci Johnson, said of the deal with Bayer: “We believe Bayer is best positioned to maximize the market opportunity for Ovaprene, which has the potential to be a first-in-category product for women, as Bayer has with other first-in-category products.”

The possibilities change exponentially when a company like Dare gets to tap into the expertise that is possessed by seasoned players like Bayer. Johnson went on to state that Bayer’s expertise in commercialization, regulation, and product development is also going to be of major help to Daré. Investors could do well to keep an eye on DARE stock over the coming days.

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Featured image: DepositPhotos © bolina

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