WATERTOWN, Mass. - EyePoint Pharmaceuticals, Inc. (NASDAQ: NASDAQ:EYPT), a biopharmaceutical company specializing in treatments for serious retinal diseases, today announced the initiation of a public offering of its common stock valued at $100 million. The company also plans to offer underwriters a 30-day option to purchase up to an additional $15 million of stock at the public offering price, minus the underwriting discount.
Joint book-running managers for the offering include J.P. Morgan, Citigroup, and Guggenheim Securities. The completion of the offering is contingent on market conditions, and there is no guarantee of its completion or the final terms.
EyePoint aims to allocate the net proceeds from this offering to propel the clinical development of its leading product candidate, DURAVYU™, intended for wet age-related macular degeneration (wet AMD (NASDAQ:AMD)) and diabetic macular edema (DME). Funds will also support the company's early-stage pipeline initiatives and general corporate functions.
The securities are being offered pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on August 8, 2024, and declared effective on August 16, 2024. Relevant details will be available in a prospectus supplement filed with the SEC.
DURAVYU™, EyePoint's primary focus, is currently undergoing Phase 3 clinical trials for wet AMD and a Phase 2 trial for DME, with expected data from the DME trial in Q1 2025 and from the AMD trials in 2026. The product leverages EyePoint's proprietary Durasert E™ technology for sustained intraocular drug delivery.
The FDA has conditionally accepted DURAVYU™ as the proprietary name for EYP-1901, though it remains investigational and is not yet approved. The timeline for potential approval is uncertain.
This public offering statement is based on a press release by EyePoint Pharmaceuticals, and it does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities will not be lawful in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
In other recent news, EyePoint Pharmaceuticals has been making significant progress in its clinical trials. The company has reported promising interim results from its Phase II VERONA study for Duravyu, a potential treatment for diabetic macular edema (DME). The study demonstrated significant improvements in visual acuity and retinal thickness. The company has also initiated the global Phase 3 LUGANO trial for Duravyu in wet age-related macular degeneration (AMD), with over 150 sites committed to the trial. EyePoint is also preparing to start the LUCIA trial, another Phase 3 study, by the end of 2024.
EyePoint Pharmaceuticals has also seen changes to its Board of Directors, with the appointment of industry veteran Fred Hassan and the resignations of Anthony P. Adamis, M.D., and David Guyer, M.D., due to their transition to full-time roles at Merck & Co.
On the analyst front, Guggenheim maintained its Buy rating on EyePoint with a $68 target. Laidlaw and H.C. Wainwright also reiterated their Buy ratings for EyePoint, while Jefferies initiated coverage with a Buy rating, indicating a potential upside of over 65%. However, CapitalOne maintained its Underweight rating for the company. These recent developments underscore EyePoint's commitment to addressing serious retinal diseases through its ongoing clinical trials and potential FDA approval of Duravyu.
InvestingPro Insights
EyePoint Pharmaceuticals' decision to initiate a public offering comes at a time when the company is experiencing significant financial dynamics. According to InvestingPro data, EyePoint's revenue growth has been robust, with a 34.98% increase over the last twelve months as of Q2 2024. This growth trajectory aligns with the company's need for capital to fund its clinical development programs, particularly for DURAVYU™.
However, investors should note that EyePoint is currently not profitable, with a negative gross profit margin of -54.83% in the same period. This underscores the importance of the planned $100 million offering to support ongoing research and development efforts.
InvestingPro Tips highlight that EyePoint is "quickly burning through cash," which explains the timing of this public offering. The company aims to strengthen its financial position to continue advancing its product pipeline. Additionally, the tip that "4 analysts have revised their earnings upwards for the upcoming period" suggests some optimism about the company's future performance, possibly related to the progress of DURAVYU™ in clinical trials.
It's worth noting that EyePoint's stock has shown volatility, with a strong return of 61.02% over the last year, despite a recent 11.21% drop in the past week. This volatility may reflect investor reactions to clinical trial progress and financial announcements such as this public offering.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for EyePoint Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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