Gold prices hold sharp gains as soft US jobs data fuels Fed rate cut bets
On Tuesday, JMP Securities adjusted its financial outlook for Ocular Therapeutix (NASDAQ:OCUL), reducing the price target from $22.00 to $19.00 while reaffirming a Market Outperform rating. The modification follows a recent downturn in OCUL’s stock performance, which saw a 13% drop intraday, compared to a 2% fall in the XBI biotech index. According to InvestingPro data, the stock has declined over 30% year-to-date and is currently trading below its Fair Value, with analyst targets ranging from $14 to $22.
Jonathan Wolleben, an analyst at JMP, addressed the market’s initial reaction to the delayed timeline for Axpaxli’s pivotal data, now expected in the first quarter of 2026 rather than the fourth quarter of 2025. Wolleben suggested that the market’s response might overlook the potential long-term benefits of the delay for Ocular Therapeutix and its product, Axpaxli. InvestingPro data shows the company maintains strong fundamentals with impressive gross profit margins of 91% and a healthy current ratio of 10.66, indicating solid financial stability despite development timeline adjustments.
The analyst pointed out three main advantages arising from the revised schedule. Firstly, the SOL-1 trial could now support a dosing interval for Axpaxli of every 6 and 12 months, an improvement over the previously anticipated 6-month interval. Secondly, the sample size for the SOL-R trial can be reduced, potentially accelerating enrollment and expediting Axpaxli’s market entry, as SOL-R is crucial for a New Drug Application (NDA) submission.
Lastly, Wolleben noted that the amendments to the trials do not impact the powering assumptions on the primary endpoints for either SOL-1 or SOL-R, meaning that the likelihood of successful outcomes remains unchanged. In light of these factors, the analyst recommended purchasing the stock amidst any continued decline, emphasizing that the potential benefits of amending the pivotal program outweigh the minor delay in data availability. InvestingPro subscribers can access 12 additional ProTips and comprehensive analysis through the Pro Research Report, offering deeper insights into OCUL’s investment potential and market position.
In other recent news, Ocular Therapeutix reported fourth-quarter 2024 earnings with total revenue of $17.1 million, slightly below analyst estimates of $17.8 million. The company’s diluted earnings per share were $(0.29), compared to the projected $(0.26), marking a wider loss than expected. Despite the earnings miss, Ocular Therapeutix’s revenue for the full year 2024 increased by 9% to $63.7 million, driven by sales of its product Dextenza. Raymond (NSE:RYMD) James maintained a Strong Buy rating with a $19.00 price target, expressing confidence in Ocular’s drug pipeline and strategic trial designs. BofA Securities adjusted its price target to $17 from $18 but continued to recommend a Buy rating, citing the recent amendment to the Special Protocol Assessment for the SOL-1 trial. The amendment includes additional re-dosing and is expected to support a flexible dosing schedule for Axpaxli, Ocular’s treatment for wet age-related macular degeneration. These trial updates are anticipated to streamline the timeline for a New Drug Application filing. Ocular Therapeutix ended the fiscal year with $392 million in cash, projected to fund operations into 2028.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.