DARE stock is up 100% over the last five trading days, but the stock could easily run another 100% on the Bayer deal.

On January 13, 2020, Bayer (BAYRY) and Dare Bioscience (DARE) announced that the companies have signed a license agreement under which Bayer may commercialize Dare’s investigational contraceptive product, Ovaprene in the United States once approved by the FDA.

Ovaprene is an investigational hormone-free monthly vaginal contraceptive currently in clinical development for the prevention of pregnancy. If approved, it could be the first monthly non-hormonal contraceptive product.

Under the agreement with Bayer, Dare will receive an upfront payment and access to Bayer’s clinical and market capabilities while retaining control over Ovaprene’s development and regulatory approval process. Bayer receives the right to obtain exclusive rights to commercialize the product in the U.S. following completion of the pivotal clinical trial being undertaken by Dare. If Bayer, in its sole discretion, makes payment to Dare of $20M, which Dare intends to apply to reimbursement of clinical study costs, then the exclusive license to commercialize Ovaprene in the U.S. will become effective. Dare will also be entitled to receive commercial milestone payments potentially totaling $310M, in addition to double digit tiered royalties on net sales. Dare plans to file an investigational device exemption, or IDE, for Ovaprene in the first half of 2020 and, pending the FDA’s review and clearance of the IDE, to initiate a pivotal contraceptive effectiveness and safety clinical study of Ovaprene in the second half of 2020. If successful, Dare expects that study to support marketing approvals of Ovaprene in the U.S., Europe and other countries worldwide.

DARE stock has a market cap of $26.5 million. The commercial milestone payments alone (not counting double digit royalties) of $310 million would put a fair market value of the stock at $19.40, provided shares outstanding was held constant which is unlikely to happen.

Daré Bioscience, Inc.(NASDAQ: DARE) announced that it will host a conference call and live webcast at 4:30 p.m. Eastern Time on Wednesday, January 22, 2020, to discuss the recently announced licensing agreement with Bayer and Daré’s broader partnering strategy, and to provide a general corporate update.

To access the conference call via phone, dial (844) 831-3031 (U.S.) or (443) 637-1284 (international). The conference ID number for the call is 2855687. The live webcast can be accessed under “Events & Presentations” in the Investor Relations section of the Company’s website at www.darebioscience.com. Please log in approximately 5-10 minutes prior to the call to register and to download and install any necessary software. To access the replay, please call (855) 859-2056 (U.S.) or (404) 537-3406 (international). The conference ID number for the replay is 2855687. The call and webcast replay will be available until February 5, 2020.

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Disclosure: We do not hold any position in DARE stock.

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