Optimistic Buy Rating for Ocular Therapeutix Amid Early-Stage NPDR Study and Wet AMD Potential

Analyst Colleen M. Kusy of Robert W. Baird reiterated a Buy rating on Ocular Therapeutix (OCUL – Research Report), retaining the price target of $18.00.

Colleen M. Kusy’s rating is based on the promising yet early-stage clinical data for Ocular Therapeutix’s leading product candidate, Axpaxli. Despite a smaller dataset that may not be wholly convincing, the absence of safety concerns in the Phase 1 study for non-proliferative diabetic retinopathy (NPDR) supports a positive outlook. The initial signs of efficacy, although not meeting some investor expectations, are seen as a good indication given the limited number of participants. Kusy believes that the potential of Axpaxli in wet age-related macular degeneration (wet AMD) remains the primary driver of the Buy rating, undeterred by the recent findings in the NPDR study.

Furthermore, Kusy notes that while the efficacy data for NPDR did not match the higher response rates observed in competitor studies, the product’s tolerability and the possibility of less frequent dosing offer significant advantages. The anticipation of further discussions with the FDA regarding the path forward for Phase 3 trials, coupled with the potential to adjust trial designs to improve efficacy outcomes, suggests that there may be strategic ways to address the current gaps in data. Importantly, Kusy emphasizes that the NPDR data do not affect the optimistic position on the wet AMD program, which is seen as a key area for Ocular Therapeutix’s growth.

In another report released on April 19, Bank of America Securities also assigned a Buy rating to the stock with a $15.00 price target.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OCUL in relation to earlier this year.

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Ocular Therapeutix (OCUL) Company Description:

Ocular Therapeutix, Inc. is a biopharmaceutical company, which engages in the development and commercialization of therapies for diseases and conditions of the eye. Its product pipeline include Dextenza, OTX-TP, and OTX-TIC . The company was founded by Amarpreet S. Sawhney and Farhad Khosravi on September 12, 2006 and is headquartered in Bedford, MA.