Ocular Therapeutix stock maintains Buy rating at TD Cowen ahead of Phase III data

Published 05/08/2025, 18:36
Ocular Therapeutix stock maintains Buy rating at TD Cowen ahead of Phase III data

Investing.com - TD Cowen has reiterated a Buy rating with a $14.00 price target on Ocular Therapeutix (NASDAQ:OCUL), currently trading at $11.66 and near its 52-week high of $12.35, as the company awaits Phase III trial results. According to InvestingPro data, analyst targets range from $14 to $22, suggesting potential upside.

The firm noted that topline data from the SOL-1 trial is expected in Q1 2026, following a trial extension implemented in March to evaluate re-dosing protocols that could support either a six-month or 12-month superiority label.

Ocular management has confirmed that most masked rescues in the trial have been performed according to pre-specified protocol criteria, which TD Cowen views as positive for the final analysis since only an "immaterial number" of patients would be excluded.

The trial is reportedly overpowered, requiring only a 15% difference at 36 weeks to achieve statistical significance, while historical data suggests a potential 50% difference between Axpaxli and Eylea based on rescue rates.

Company management has expressed confidence that the masked data remains consistent with expectations of a 40-60% delta between treatment arms, based on the number, cadence, and nature of rescues observed in the ongoing trial.

In other recent news, Ocular Therapeutix reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company posted a revenue of $13.5 million, narrowly missing the projected $13.6 million. Despite this, revenue exceeded Raymond (NSE:RYMD) James’ estimate of $12.0 million, highlighting some positive aspects. However, Ocular Therapeutix recorded a diluted earnings per share loss of $(0.39), which was worse than the forecasted $(0.35) loss. Expenses were notably higher than expected, totaling $51.1 million compared to the anticipated $43.1 million. Analysts from Clear Street and Raymond James maintained their positive outlook on the company, reiterating Buy and Strong Buy ratings with price targets of $18 and $19, respectively. Revenue growth was primarily driven by Dextenza, with unit sales increasing 5% year-over-year, although there were challenges due to reimbursement conditions. These developments reflect the ongoing financial challenges and opportunities for Ocular Therapeutix.

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