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Investing.com - Chardan Capital Markets downgraded Clearside Biomedical (NASDAQ:CLSD) from Buy to Neutral and withdrew its price target as the company explores strategic alternatives. The downgrade comes as the stock has fallen 32% in the past week, according to InvestingPro data, with shares currently trading at $0.60.
On July 17, Clearside announced it would explore strategic alternatives to advance its suprachoroidal space (SCS) platform, including potential merger, acquisition, or asset sale options.
Chardan Capital Markets cited uncertainty about the company’s future plans as the primary reason for the downgrade, noting that Clearside has a Phase 3-ready program in CLS-AX but cannot advance it without funding or partnership.
CLS-AX is a suprachoroidal formulation of the tyrosine kinase inhibitor axitinib delivered with Clearside’s proprietary SCS microinjector, with a planned Phase 3 program consisting of two identical non-inferiority trials.
Despite the uncertain future for CLS-AX, Clearside maintains partnerships with several companies that have licensed its SCS microinjector technology for delivery of their own therapeutics.
In other recent news, Clearside Biomedical has faced significant financial challenges, prompting the company to explore strategic alternatives. The company has paused all research and development programs, including its CLS-AX treatment for wet age-related macular degeneration, due to difficulties in securing necessary funding for a Phase 3 program. Clearside has retained Piper Sandler to assist in evaluating potential options such as sales, licensing, or mergers to maximize shareholder value. The company ended the first quarter of 2025 with approximately $14 million in cash and has implemented cost-cutting measures, including transitioning employees to consulting roles. Stifel, Citizens JMP, and Needham have all downgraded Clearside’s stock rating, citing cash constraints and uncertainty in securing future funding. Despite these challenges, Clearside’s SCS Microinjector platform continues to be utilized by partners like Bausch + Lomb and REGENXBIO. The company has not set a timetable for the strategic review and will not provide updates until the Board approves a specific action.
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