Well, here it is: Pioneer pSivida’s big deal is with Pfizer. And it’s pretty darn big. The stock is up strong, but as the Johnny-come-latelies pile in, we may as well ride this move for all it’s worth. Hold pSivida for now.

Here’s the essence of the deal:

Global drug delivery company, pSivida Limited, announced today that it has signed US$165m exclusive worldwide Collaborative Research and Licensing Agreement with Pfizer Inc. for pSivida’s controlled drug delivery technologies including the Medidur technology in ophthalmic applications.

Key elements of the licensing deal:

• USD155 million in development and sales related milestones;


• Pfizer to fund the total cost of the joint research program aimed at developing products using pSivida’s drug delivery technologies;


• Pfizer invests USD5 million in pSivida;


• Pfizer to invest an additional USD5 million subject to certain conditions;


• pSivida to use proceeds of upfront payments (together with other funds available to pSivida) to redeem the Sandell Convertible Note; and


• pSivida is free to license our drug delivery technologies, including Medidur, for all non-ophthalmic applications, including products that are developed from this collaboration.

The company announced earlier today that it has issued a Redemption Notice for the Sandell Convertible Note enabling the company to move forward with a much-simpler structure facilitating the company’s future development.

Longer term, this is the kind of deal that will move a development-stage company into real company territory. For the whole story, click on the following links: http://www.psivida.com/News/download/ASX/ASX%20Release_pSivida%20and%20Pfizer%20License.pdf and http://www.psivida.com/News/download/ASX/ASX%20Release_pSivida%20Note%20Redemption.pdf