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Investing.com - Clearside Biomedical (NASDAQ:CLSD) stock rating was downgraded from Market Outperform to Market Perform by Citizens JMP analyst on Thursday. The volatile biotech stock, with a beta of 2.05 and market capitalization of approximately $50 million, has seen its shares decline over 30% in the past year.
The downgrade follows Clearside’s decision to pause its research and development programs, including its CLS-AX treatment for wet AMD (NASDAQ:AMD) which had shown promising Phase 2 data in October. The company has been unable to raise sufficient capital for an expensive Phase 3 program since releasing those results. According to InvestingPro data, the company’s revenue has declined by 55% year-over-year, despite maintaining impressive gross margins of 89%.
Clearside is now exploring strategic alternatives including selling, licensing, monetizing or divesting its assets through partnerships, mergers, acquisitions, joint ventures or other strategic transactions. The company has stated it will not provide updates until its board approves a specific action.
The company’s suprachoroidal microinjector technology continues to be used by multiple partners, including Bausch + Lomb’s Xipere for macular edema, Aura’s Phase 3 choroidal melanoma candidate, REGENXBIO’s diabetic retinopathy treatment, and BioCryst (NASDAQ:BCRX)’s Phase 1 diabetic macular edema treatment.
Clearside ended the first quarter of 2025 with approximately $14 million in cash and has guided for runway into the fourth quarter of 2025, which may be extended with expected cost-cutting measures. While InvestingPro analysis indicates the company maintains a healthy current ratio of 3.19, suggesting adequate liquidity to meet short-term obligations, investors should note that additional financial metrics and insights are available through InvestingPro’s comprehensive research reports.
In other recent news, Clearside Biomedical announced its financial results for the first quarter of 2025, reporting revenue of $2.3 million and a net loss of $8.2 million, which was less than the estimated loss of $9.1 million. The company is actively seeking capital to advance its Phase 3 program for CLS-AX in wet Age-related Macular Degeneration. Clearside Biomedical has hired Piper Sandler to explore strategic alternatives, including potential sales, licensing, or mergers, amid cash concerns. Needham downgraded Clearside Biomedical from Buy to Hold due to the company’s difficulties in securing funding for its CLS-AX program. H.C. Wainwright adjusted its price target for Clearside Biomedical from $6.00 to $5.00, maintaining a Buy rating. JMP Securities also reaffirmed a Market Outperform rating with a steady price target of $5.00, expressing optimism about upcoming pivotal trials for CLS-AX. Clearside has implemented cost-cutting measures, transitioning all employees to consulting roles and pausing internal research and development. The company emphasized that no agreement for any strategic transaction has been reached, and there is no guarantee the process will result in a transaction.
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