On Tuesday, BofA Securities made an adjustment to Oculis Holding AG's (NASDAQ:OCS) shares financial outlook, reducing the price target to $20 from the previous $21 while still maintaining a Buy rating on the company's stock.
This adjustment follows Oculis's announcement of Phase 2 exploratory data for OCS-02, also known as licaminlimab, which has prompted further development of the drug for dry eye patients possessing the TNFR1 genetic biomarker.
The Phase 2 data indicated that OCS-02 improved signs of dry eye disease more consistently in patients with the TNFR1 biomarker, despite the small size of the patient subgroup, which included only 12 individuals in the drug arm. BofA Securities has slightly increased the odds of success for the OCS-02 program to 55% from the previous 50%, based on these findings.
Oculis plans to advance the drug into pivotal Phase 3 trials, pending a meeting with the FDA. The success of this upcoming program is contingent upon achieving positive outcomes in four separate studies. BofA Securities has factored in a $6 per share risk-adjusted contribution to the valuation of OCS-02 in light of these developments.
The firm reiterated its Buy rating for Oculis Holding AG, with a new price objective of $20 per share. This decision reflects the firm's anticipation of the drug's potential success and its contribution to the company's value, despite the recent adjustments to the odds of success and the slight decrease in the price target.
In other recent news, Oculis Holding AG has seen an adjustment to its stock price target by H.C. Wainwright, from $29.00 to $28.00, despite the firm maintaining a Buy rating on the company's stock. This change follows the successful conclusion of a substantial equity financing round and precedes expected clinical trial outcomes.
The company notably completed a registered direct offering, issuing 5 million ordinary shares at $11.75 each, yielding gross proceeds of roughly $59 million. Consequently, Oculis' financial standing has been significantly bolstered, with its cash and short-term investments estimated at CHF 129 million post-financing.
In addition to the financial developments, Oculis commenced trading on the Nasdaq Iceland Main Market, broadening its market presence with this dual listing. Investors are keenly awaiting the upcoming topline data from the Phase 2b RELIEF trial for OCS-02 (licaminlimab) in treating dry eye disease (DED), slated for release in the second quarter of 2024.
H.C. Wainwright has reiterated its confidence in Oculis with a Buy rating, adjusting the firm's estimated market value to $1.17 billion, corresponding to the revised price target of $28 per share.
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