Guggenheim reiterated their buy rating and set a $68.00 price target on EyePoint Pharmaceuticals, Inc. in a report on Monday. (NASDAQ: NASDAQ: ) following the release of interim data from a Phase II study. EyePoint Pharmaceuticals disclosed the 16-week interim results of its VERONA study for Duravyu, a treatment for diabetic macular edema (DME). The study, which includes 27 participants, evaluates the effectiveness of a single dose of 2mg of aflibercept and two doses of Duravyu – the highest dose at 2.7mg and the lowest dose at 1.3mg.
The high-dose Duravyu group showed significant improvements in the other arms of the study in both visual acuity and subfield intensity (CST). Improvement in visual acuity was measured at +8.9 letters compared to control, while reduction in CST was recorded at -37.6um compared to control. These findings were recorded at the 16-week mark of the study.
Improvement was observed as early as week 4 in all study arms. Despite a strong recovery process initiated at week 12, the high-dose Duravyu group continued to show a greater proportion of participants without the need for dietary supplements (82%) compared to the aflibercept control (50% free supplementation) and low-dose arms (60 % extra. free).
Duravyu’s safety profile was also highlighted, with no reported cases of endophthalmitis, vasculitis, or implant migration noted during the study. With these promising early results, Guggenheim expects that EyePoint will pursue further development of Duravyu for the treatment of DME. Complete 6-month data from the study is expected to be available in the first half of 2025.
The company also expects that these short-term results will have a positive impact on important ongoing studies related to Age-Related Macular Degeneration (wAMD). Guggenheim’s continued endorsement of EyePoint Pharmaceuticals reflects confidence in Duravyu’s ability to address unmet needs in the treatment of eye diseases.
In other recent news, EyePoint Pharmaceuticals continues to make major advances in the medical field. The company reported promising interim results in its VERONA Phase II study of Duravyu, a potential treatment for diabetic macular edema (DME). Studies have shown significant improvements in visual acuity and retinal thickness, echoed by Laidlaw and HC Wainwright, who both reiterated their EyePoint purchase ratings.
The company also initiated the global Phase 3 LUGANO trial of Duravyu in wet age-related macular degeneration (AMD (NASDAQ: )), with more than 150 sites committed to the trial. EyePoint is also preparing to start the LUCIA trial, another Phase 3 study, in late 2024. These tests are closely watched by analysts, including Jefferies, which has started coverage with a buy rating, indicating a potential upside of more than 65%.
EyePoint Pharmaceuticals also saw changes to its Board of Directors, with the appointment of industry veteran Fred Hassan and the resignations of Anthony P. Adamis, MD, and David Guyer, MD, due to transition to full-time jobs at Merck & Co. This, along with the ongoing trials and FDA approval of Duravyu, underscores EyePoint’s commitment to addressing serious retinal diseases. Top results from these tests are expected in 2026, and investors and industry watchers are eagerly awaiting these results.
InvestingPro Insights
To go along with Guggenheim’s optimistic view on EyePoint Pharmaceuticals (NASDAQ: EYPT ), the latest data from InvestingPro provides more context for investors. Despite the promising short-term results from the VERONA study, it is important to note that EYPT is currently unprofitable, with a negative revenue return of -54.83% in the last twelve months from Q2 2024. This is in line with InvestingPro’s tip indicating that the company is suffering from profit margins which is a weak sum.
However, there are positive signs as well. The company’s revenue growth stood at 34.98% during the same period, which suggests an increase in the market for its products. Additionally, InvestingPro Tip highlights that EYPT carries more cash than debt on its balance sheet, which could provide financial flexibility as it continues to develop Duravyu and other therapies.
Investors should note that EYPT stock price has been volatile, with a significant return of 61.02% in the past year, but a return of -11.21% in the last week. This volatility is reflected in another InvestingPro Tip, which notes that stock price movements in EYPT are volatile.
For those looking for a comprehensive analysis, InvestingPro offers 12 additional EYPT tips, which provide a deeper understanding of the company’s financial health and market conditions.
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