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On Wednesday, Citizens JMP maintained a positive stance on Ocular Therapeutix (NASDAQ:OCUL), reiterating its Market Outperform rating and a price target of $19.00. The stock has shown strong momentum, gaining over 10% in the past week and 58% over the last year. According to InvestingPro data, analyst price targets range from $14 to $22, suggesting significant upside potential from the current price of $7.91. The optimism is based on the anticipated top-line data from the Phase 3 SOL-1 trial of Axpaxli for the treatment of wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)), expected in the first quarter of 2026. The U.S. Food and Drug Administration (FDA) has approved an amendment to the Special Protocol Assessment (SPA) for the trial, which now includes additional redosing at weeks 52 and 76. This amendment is significant as it could lead to a treatment label that allows for longer intervals between treatments.
The analyst at Citizens JMP expressed confidence in the potential approval of Axpaxli for wet AMD, citing the robustness of the clinical data and the SPA for the SOL-1 trial. The SPA is a process in which the FDA provides formal advice and written agreement on the design and size of clinical trials intended to form the basis for a drug’s approval.
The financial projections for Axpaxli are also promising, with peak sales for the treatment of wet AMD estimated to reach around $3 billion. This projection is considered conservative by the analyst, especially in light of the fact that a competing drug, Vabysmo, reported sales surpassing $4 billion in 2024. InvestingPro analysis shows that Ocular Therapeutix, currently valued at $1.26 billion, maintains strong liquidity with a current ratio of 10.66 and holds more cash than debt on its balance sheet. Axpaxli is expected to offer a substantially improved durability profile, which could make it a strong competitor in the market.
Ocular Therapeutix is focused on developing and commercializing therapies for diseases and conditions of the eye using its proprietary hydrogel platform technology. Axpaxli is one of the key products in its pipeline, and the market is closely watching its progress through clinical trials. The FDA’s recent agreement to the amendment of the SPA is a positive development for the company, potentially streamlining the path towards commercialization. With revenue growth of 9.03% in the last twelve months and its next earnings report due on May 12, 2025, investors seeking deeper insights can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s financial health, growth prospects, and market position among 1,400+ top US stocks.
In other recent news, Ocular Therapeutix reported a 15% increase in total revenue for the fourth quarter of 2024, reaching $17.1 million, surpassing expectations of $16.6 million. However, the company experienced a net loss of $48.4 million, larger than the anticipated $37.2 million loss. The company’s SOL-1 trial for its axitinib intravitreal implant, Axpaxli, has undergone amendments, introducing re-dosing at Weeks 52 and 76, which shifts the topline data readout to the first quarter of 2026. William Blair initiated coverage of Ocular Therapeutix with an Outperform rating, highlighting the potential of Axpaxli in treating neovascular age-related macular degeneration. Meanwhile, H.C. Wainwright maintained a Buy rating with a $15 target, while JMP Securities adjusted its target to $19, citing potential long-term benefits of the trial amendments. Raymond (NSE:RYMD) James reiterated a Strong Buy rating and a $19 price target, acknowledging the strategic design of the trials. BofA Securities also adjusted its price target to $17, maintaining a Buy rating, and emphasized the strategic trial modifications that could streamline the New Drug Application process. These developments reflect the ongoing adjustments and strategic planning in Ocular Therapeutix’s clinical programs.
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