Asia tech stocks slide tracking Wall St losses amid AI doubts, govt. uncertainty
On Thursday, Stifel analysts reiterated their Buy rating on Clearside Biomedical (NASDAQ:CLSD) shares with a steady price target of $8.00, representing significant upside from the current price of $0.86. The firm’s endorsement follows Clearside Biomedical’s announcement of a fully outlined Phase 3 program for its proprietary treatment CLS-AX in wet age-related macular degeneration (wAMD), after a successful End of Phase 2 (EOP2) meeting with the U.S. Food and Drug Administration (FDA).
The company has aligned with the FDA on the design of its Phase 3 program. Despite this advancement, Clearside Biomedical is exploring strategic partnerships due to its current financial position, with $13.6 million in cash and a financial runway extending into the fourth quarter of 2025. According to InvestingPro data, while the company maintains a healthy current ratio of 4.44, indicating strong short-term liquidity, it’s currently burning through cash rapidly. Get access to 8 more key financial insights and detailed analysis with InvestingPro’s comprehensive research report.
Clearside’s partnered programs are reportedly progressing well. The commercialization of Xipere is aiding in training the medical community on suprachoroidal space (SCS) administration. Additionally, clinical programs are moving into late-stage development. Regenxbio Inc . (NASDAQ:RGNX) has indicated that its ABBV-RGX-314 treatment for diabetic retinopathy (DR) is set to enter a Phase 3 trial this year. Furthermore, Aura Biosciences’ Bel-sar is advancing through the Phase 3 CoMpass trial, targeting early-stage choroidal melanoma.
The success of these partnered programs underscores the versatility of the SCS Microinjector platform, which is suitable for a range of treatments including small molecules, gene therapies, and viral drug conjugates. Stifel analysts believe that the breadth of these programs not only demonstrates the platform’s adaptability but also has the potential to generate additional non-dilutive funding. Such funding is deemed essential for the further development of CLS-AX. InvestingPro analysis reveals impressive gross profit margins of 91.05% and projects revenue growth for FY2025, though the company’s overall financial health score remains challenged.
In other recent news, Clearside Biomedical reported a significant revenue beat for the fourth quarter of 2024, with revenue reaching $306,000, surpassing the forecast of $130,140. Earnings per share met expectations at -0.1, indicating ongoing financial challenges despite the positive revenue performance. Analysts from JMP Securities and Stifel have maintained their ratings on Clearside Biomedical, with JMP keeping a Market Outperform rating and a $5.00 price target, and Stifel maintaining a "Buy" rating with an $8.00 target. The company’s progress towards Phase 3 trials for its CLS-AX treatment for wet age-related macular degeneration (AMD (NASDAQ:AMD)) was highlighted, with plans to initiate these trials in the second half of 2025. Clearside Biomedical concluded 2024 with $20 million in cash, providing a financial runway into the fourth quarter of 2025, though additional capital will be necessary for the Phase 3 trials. The company is also advancing its partnered portfolio, with collaborations leading to new developments in Australia, Singapore, and the upcoming Phase 3 trials for diabetic retinopathy and early-stage choroidal melanoma. These developments reflect Clearside Biomedical’s strategic focus on advancing its innovative treatment pipeline.
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