EYPT - EyePoint's Setback In NPDR Does Not Bode Well For DME (Rating Downgrade)
2024-05-06 14:21:52 ET
Summary
- EyePoint Pharmaceuticals, Inc. stock surged following positive Phase 2 trial outcomes in wet AMD, showing non-inferiority to Eylea.
- Despite success in wet AMD, 1901 showed disappointing results in an NPDR trial, failing its primary endpoint.
- Financially, EyePoint is sound with a healthy current ratio and sufficient cash runway, yet facing significant future costs.
- Investment recommendation: Downgrade EYPT to "Sell" due to high risks and competitive pressures, despite some positive trial results.
EyePoint's Rally Amid Wet AMD Trial Progress
EyePoint Pharmaceuticals, Inc. 's ( EYPT ) stock had rallied considerably ahead of key readouts in 2024. It's up 60% since my last evaluation in November. I assigned a "confidence score of 40 out of 100" with a "slight bearish tilt." The focus was on the DAVIO 2 trial outcome, testing EyePoint's EYP-1901, a tyrosine kinase inhibitor with bioerodible Durasert E, in wet age-related macular degeneration [AMD], a condition that impacts up to 11 million people in the U.S....
EyePoint's Setback In NPDR Does Not Bode Well For DME (Rating Downgrade)