Goldman Sachs downgrades Ocumension stock to Neutral on pipeline reassessment

Published 09/07/2025, 14:56
Goldman Sachs downgrades Ocumension stock to Neutral on pipeline reassessment

Investing.com - Goldman Sachs downgraded Ocumension Therapeutics (HK:1477) stock rating from Buy to Neutral while raising its price target to HK$9.78 from HK$6.93.

The investment bank’s reassessment follows a comprehensive review of Ocumension’s drug pipeline, with adjusted earnings per share estimates for 2025-2027 now projected at Rmb-0.12, Rmb0.08, and Rmb0.16, respectively.

Goldman Sachs increased probability of success ratings for several key Ocumension products, including OT-101 for myopia (from 48% to 57%) and OT-202 for dry eye disease (from 19% to 67%). The firm also added AR-15512 for dry eye disease with a 76% probability of success following its recent FDA approval.

The updated analysis incorporates OT-802 for presbyopia with a 67% probability rating as it advances to Phase 3 trials, while removing previous tariff assumptions on U.S. imports affecting Yutiq.

Goldman Sachs simultaneously lowered success probabilities for OT-503/OT-701 from 76% to 17% citing limited clinical updates, while adding potential out-licensing of OT-101 with 50% probability and risk-adjusted ex-China peak sales estimated at US$303 million.

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