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On Wednesday, TD Cowen reiterated its Buy rating and $20.00 price target for EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT). This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $18 to $68, suggesting significant upside potential. The firm’s positive stance remains despite a slight decrease in the benefit observed at 24 weeks compared to 16-week data for EyePoint’s Duravyu 2.7mg in treating Diabetic Macular Edema (DME). While the 24-week data showed non-inferiority rather than superiority to Eylea 2mg, analysts at TD Cowen believe this is sufficient for Phase III trial success. According to InvestingPro analysis, EyePoint maintains a FAIR overall financial health score, with notably strong liquidity as its current ratio stands at 5.5x, indicating robust financial stability to support its clinical programs.
EyePoint Pharmaceuticals’ Duravyu 2.7mg showed a +7.1 letter improvement in vision at 24 weeks, closely matching the +7.3 letter improvement seen with the Eylea 2mg control arm. This resulted in a negligible -0.2 letter difference. The 16-week data had previously indicated a more pronounced benefit with a +5.7 letter net difference favoring Duravyu. However, patients in the Eylea control arm received rescue injections at weeks 20 and 24, which improved their vision, narrowing the gap to demonstrate non-inferiority.
The study also included a low-dose Duravyu 1.3mg arm with 10 patients, which performed comparably to the higher dose and control arms. These patients experienced an average +6.9 letter improvement, or a -0.4 letter net difference versus the control arm. Despite the reduced benefit since the 16-week mark, the Best Corrected Visual Acuity (BCVA) curves suggest potential for Duravyu 2.7mg to demonstrate non-inferiority in a Phase III trial.
EyePoint’s management pointed out that one outlier in the Duravyu 2.7mg arm significantly impacted the BCVA results between weeks 20 and 24. This patient missed their week 20 appointment and required a rescue at week 24 due to vision decline, but subsequently showed improvement at week 28. Excluding this patient from the BCVA calculations, Duravyu 2.7mg would have shown a +10.1 letter gain. Additionally, if a blended BCVA endpoint between weeks 20 and 24 had been used, Duravyu 2.7mg would have shown a +8.6 letter gain, providing a +2.4 letter net benefit over Eylea’s +6.2 letter gain.
EyePoint Pharmaceuticals plans to engage with the FDA/EMA in Q2 and aims to initiate a pivotal NI program by the end of the year. The company’s strong cash position relative to debt provides financial flexibility for these initiatives, though InvestingPro data indicates the company is currently burning through cash rapidly. The success of the Phase III trial, especially with Q6M dosing, could position DME treatment as a blockbuster opportunity, closely following the path of treatments for wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)). For deeper insights into EYPT’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, EyePoint Pharmaceuticals has been making significant strides in the clinical development of its lead product, DURAVYU™. Positive results have been reported from the Phase 2 VERONA clinical trial for the treatment of diabetic macular edema (DME). The trial met its primary endpoint, showing significant improvements in visual acuity and anatomical control without serious adverse events. Despite these positive outcomes, EyePoint’s stock experienced a sharp decline, which analysts such as Cantor Fitzgerald’s Jennifer Kim found perplexing.
EyePoint’s management plans to engage with the FDA in the second quarter regarding the initiation of a Phase 3 clinical trial for DURAVYU™, aiming to establish it as a best-in-class treatment for DME. In addition, the company is making progress with its Phase 3 LUGANO and LUCIA trials for wet age-related macular degeneration (AMD), with the LUGANO trial already one-third enrolled and the LUCIA trial advancing ahead of schedule.
EyePoint has also strengthened its leadership by appointing Dr. Reginald J. Sanders, a renowned retina specialist, to its Board of Directors. These are recent developments that continue to shape the trajectory of EyePoint Pharmaceuticals.
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