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Ocular stock gains with Outperform rating, accelerated enrollment in Phase 3 trials

EditorAhmed Abdulazez Abdulkadir
Published 03/12/2024, 17:20
OCUL
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On Tuesday, Baird reaffirmed its positive stance on Ocular Therapeutix (NASDAQ:OCUL), maintaining an Outperform rating and a $17.00 price target for the company's stock. The biopharmaceutical company, which has delivered an impressive 264% return over the past year according to InvestingPro data, recently announced significant advancements in its clinical trials for Axpaxli, a treatment for wet age-related macular degeneration (AMD (NASDAQ:AMD)).

Ocular Therapeutix disclosed that its Phase 3 superiority trial, SOL-1, has randomized over 300 patients. The trial is designed to evaluate the efficacy of Axpaxli in treating wet AMD. The company, which maintains a strong liquidity position with a current ratio of 13.01 and more cash than debt on its balance sheet, expects to complete randomization within the week.

Additionally, the SOL-R trial, which is a Phase 3 non-inferiority study for the same condition, is seeing accelerated enrollment rates as patients now have the option to directly participate in the study.

The analyst at Baird highlighted the underappreciated potential for Axpaxli in the wet AMD market. With the progress in patient enrollment and trial execution, the company is on track to deliver topline data from the SOL-1 study in the fourth quarter of 2025.

Ocular Therapeutix's commitment to advancing its clinical programs in wet AMD has been met with optimism by Baird. The firm's reiteration of the Outperform rating reflects confidence in the company's prospects and the anticipated positive outcomes of the ongoing trials.

In other recent news, Ocular Therapeutix reported key advancements in its third-quarter financial report and during its earnings call. The company's total revenue reached $15.4 million, a 2.3% year-over-year increase, despite falling short of the anticipated $16.8 million. Net losses were also reported at $36.5 million, or $0.22 per share. H.C. Wainwright subsequently raised Ocular Therapeutix's price target to $15.00, maintaining a Buy rating.

The company's lead product, DEXTENZA, is anticipated to generate between $62 million and $67 million in revenue for the full year of 2024. Notably, Ocular Therapeutix has made significant strides in the Phase 3 SOL-1 trial for AXPAXLI, an implant designed to treat wet Age-related Macular Degeneration (AMD). The trial is progressing faster than initially expected due to high demand and is anticipated to reach full enrollment and randomization by the end of 2024.

In addition, Ocular Therapeutix has initiated direct patient enrollment in the subsequent SOL-R trial, potentially expediting the pivotal program for AXPAXLI. The company expects topline results from the SOL-1 trial in the fourth quarter of 2025. These developments, backed by a robust cash position of approximately $427 million, underscore Ocular Therapeutix's commitment to advancing AXPAXLI's clinical development and exploring treatment options for retinal diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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