Cardiff Oncology shares plunge after Q2 earnings miss
On Thursday, H.C. Wainwright analyst raised the price target on Ocugen, Inc. (NASDAQ:OCGN) to $8.00, up from the previous $7.00, while maintaining a Buy rating on the stock. Currently trading at $0.66, the stock sits near its 52-week low of $0.61, with analyst targets ranging from $4.00 to $8.00. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis. The adjustment follows recent clinical data from the Phase 1 portion of the Phase 1/2 ArMaDa Study, which evaluates OCU410 for the treatment of geographic atrophy (GA) secondary to dry age-related macular degeneration (dAMD).
The updated clinical data, presented on February 12, indicated that OCU410 demonstrated promising efficacy signals. Patients who received a single subretinal injection of OCU410 showed a clinically meaningful improvement in visual acuity. Specifically, all nine patients in the trial experienced a 2-line (10 letter) gain in visual acuity in the treated eye when assessed using low-luminance visual acuity (LLVA) evaluation. While the clinical results are promising, InvestingPro data shows the company is quickly burning through cash, with an EBITDA of -$50.89M in the last twelve months. Get access to 12 more exclusive InvestingPro Tips for OCGN and comprehensive analysis through the Pro Research Report.
Furthermore, the two patients who reached the nine-month evaluation point by the data cut-off date exhibited a 44% slower growth of GA lesions in the treated eye compared to the untreated eye. This outcome suggests that OCU410 could have a significant impact on preserving retinal tissue.
The analyst also noted that although OCU410 has not been compared directly with other treatments, the results at nine months post-treatment were more favorable than those seen with monthly or once-every-other-month dosing of pegcetacoplan. Based on these findings and changes to their model, H.C. Wainwright has revised their price target for Ocugen to the new $8.00 per diluted share.
The company’s latest clinical data update has contributed to the positive outlook for Ocugen’s stock, as it continues to show potential in the treatment of GA secondary to dAMD. The Buy rating by H.C. Wainwright reflects confidence in the continued progress and potential market impact of OCU410 as a treatment option. Despite a challenging six-month period with a 50% stock price decline, the company maintains a strong liquidity position with a current ratio of 2.58, indicating its ability to meet short-term obligations. Discover more detailed financial insights and valuations with InvestingPro’s comprehensive research tools and expert analysis.
In other recent news, Ocugen Inc. has made significant strides in its clinical programs. The European Commission has endorsed the European Medicines Agency’s Committee for Advanced Therapies (CAT) classification for Ocugen’s gene therapy product, OCU400. This endorsement is a significant step for Ocugen as OCU400 becomes the first gene therapy for a broad retinitis pigmentosa (RP) indication to enter Phase 3 trials. The Advanced Therapy Medicinal Product (ATMP) classification will expedite the regulatory review process for OCU400, potentially making it a one-time gene therapy for life.
Moving forward, Ocugen plans to file a Marketing Authorization Application (MAA) in 2026. In addition, the Phase 3 liMeliGhT clinical trial for OCU400 is currently enrolling participants. The trial seeks to include patients aged eight and above with early to late-stage RP.
In its Q3 2024 earnings report, Ocugen highlighted its financial performance with cash and restricted cash totaling $39 million as of September 30, 2024. However, it also recorded total operating expenses of $14.4 million. Despite high operating expenses, no serious adverse events were reported in trials. Ocugen’s CEO, Dr. Shankar Musanuri, emphasized the safety and potential of Ocugen’s gene therapy products.
These recent developments underscore Ocugen’s commitment to advancing its clinical trials and addressing unmet needs in ophthalmology.
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