Maintaining Buy Rating on EyePoint Pharmaceuticals: Strong Prospects in wAMD Market Despite NPDR Study Setback

Analyst Tim Chiang from Capital One Financial maintained a Buy rating on EyePoint Pharmaceuticals (EYPT – Research Report) and decreased the price target to $35.00 from $50.00.

Tim Chiang has given his Buy rating due to a combination of factors related to EyePoint Pharmaceuticals’ potential in the wet age-related macular degeneration (wAMD) market and its strong financial position. Despite the recent setback in the Phase 2 study for non-proliferative diabetic retinopathy (NPDR), which did not meet its primary endpoint, Chiang believes that the market reaction was excessive. The primary potential for EyePoint’s product, Duravyu, lies in the treatment of wAMD, a market with an opportunity exceeding $7 billion. Chiang maintains that the miss in the NPDR study does not significantly impact the prospects for Duravyu in the wAMD space, which remains a substantial opportunity for the company.
Furthermore, Chiang is encouraged by the company’s balance sheet, noting a strong cash position that should support EyePoint through pivotal trials. The absence of drug-related serious adverse events in the study and the expectation of more details on the pivotal study designs for wAMD bolster confidence in the company’s trajectory. Despite lowering the price target, the analyst’s outlook remains positive, anticipating further clarity from upcoming data and continued progress in the company’s pipeline, particularly for treating wAMD.

According to TipRanks, Chiang is an analyst with an average return of -13.0% and a 37.83% success rate. Chiang covers the Healthcare sector, focusing on stocks such as EyePoint Pharmaceuticals, Jasper Therapeutics, and Ironwood Pharma.

In another report released today, Guggenheim also maintained a Buy rating on the stock with a $68.00 price target.

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EyePoint Pharmaceuticals (EYPT) Company Description:

EyePoint Pharmaceuticals, Inc. is a biopharmaceutical company. It engages in the development and commercializing of ophthalmic products. It offers FDA-approved sustained-release treatments in ophthalmology under the DEXYCU, ILUVIEN, Verisome, Retisert, and Durasert brands. The company was founded in 1987 and is headquartered in Watertown, MA.