Key insights
- Jefferies downgraded EyePoint Inc. (EYPT) to Hold from Buy and cut its price target to $1.00 from $8.00 following the company's Phase 3 LUCIA study for Duravyu in wet age-related macular degeneration missing its primary endpoint. This is the second Phase 3 trial setback for the company. Jefferies cited limited cash runway and extended timelines for other programs as reasons for the downgrade. The stock plummeted 86% on the news.
Investing.com - Jefferies downgraded EyePoint Inc. (NASDAQ:EYPT) to Hold from Buy and cut its price target to $1.00 from $8.00 on Monday. The stock plummeted to $0.45, down 86% from its previous close of $3.14, with shares now trading near their 52-week low and down 84% year-to-date.
The downgrade follows the company’s Phase 3 LUCIA study of Duravyu in wet age-related macular degeneration missing its primary endpoint of best corrected visual acuity non-inferiority to aflibercept. This marks the second Phase 3 trial setback after the LUGANO study also missed its endpoint.
EyePoint stated no study irregularities impacted the results and there are no meaningful subgroup differences. The company plans to analyze the results further, but Jefferies said a path forward in wet age-related macular degeneration appears unlikely.
The company’s Phase 3 diabetic macular edema program is fully enrolled with data expected in the fourth quarter of 2027. EyePoint reported cash of $118 million, or $1.36 per share, at the end of the third quarter. An InvestingPro tip highlights the company is quickly burning through cash, with negative free cash flow of $271 million over the last twelve months. Investors can access 19 additional ProTips for EYPT on the platform.
Jefferies cited limited cash runway and the extended timeline to diabetic macular edema readouts as reasons for the Hold rating.
In other recent news, EyePoint Inc. has faced several downgrades from analysts following disappointing results from its LUGANO Phase III wet AMD trial. TD Cowen downgraded EyePoint to a Hold rating, reducing its price target from $20.00 to $4.00, due to concerns about the trial’s outcome. Chardan also downgraded the stock to Neutral from Buy, slashing its price target from $65.00 to $5.00, citing increased regulatory uncertainty. RBC Capital followed suit by downgrading EyePoint to Sector Perform, with a new price target of $5.00, after the trial failed to meet its primary non-inferiority endpoint.
Despite these setbacks, Guggenheim maintained a Buy rating on EyePoint, keeping its price target at $68.00, noting mixed trial data. Jefferies also kept a Buy rating, though it lowered its price target to $8.00 from $30.00, following the trial’s failure to meet its primary endpoint. The trial results were impacted by nine patients in the DURAVYU arm who experienced significant vision loss from non-wet AMD causes. These developments have raised skepticism among investors and regulators, according to analysts. The ongoing regulatory concerns and trial outcomes remain pivotal for EyePoint’s future prospects.
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