EyePoint's EYP-1901 Tipped to Transform Wet AMD Market, Analyst Predicts Potential $870M Sales by 2035

JonesResearch has initiated coverage of ophthalmic biopharmaceutical company EyePoint Pharmaceuticals Inc EYPT with a Buy rating and a $26 price target. 

The analyst writes that EyePoint's lead asset EYP-1901 for age-related macular degeneration (AMD) represents a potential first-in-class maintenance therapy utilizing the company's Durasert technology, which enables consistent and highly targeted drug release through 6 months or longer from a single intravitreal injection. 

The company is conducting its Phase 2 DAVIO 2 trial of EYP-1901 in previously treated wet AMD patients and expects to report top-line results from the trial in December 2023. 

Also Read: EyePoint Pharma Offloads Its Commercially-Available Eye Implant For $82.5M Plus Royalties.

JonesResearch is bullish on EYP-1901 based on its durability of vision-preserving effects shown to date, as well as its novel mechanism of action as a next-generation tyrosine kinase inhibitor.

It says wet AMD presents a potential multi-billion dollar opportunity for EYP-1901 as a 6-month maintenance therapy following induction with any standard-of-care anti-VEGF biologic.

Few therapies are currently available for wet AMD, including standard-of-care VEGF-A inhibitors Regeneron Pharmaceuticals Inc's REGN Eylea (aflibercept) and Roche Holding AG's RHHBY Lucentis (ranibizumab), as well as the more recently approved Vabysmo (faricimab), that collectively generated over $8 billion in global net sales in 2022.

The analyst estimates risk-adjusted US net sales of EYP-1901 to approach ~$870 million by 2035 with a 35% probability of success.

Looking beyond wet AMD, the company's follow-on programs in diabetic macular edema and non-proliferative diabetic retinopathy present additional blockbuster opportunities for EYP-1901, and a potentially meaningful upside to EYPT valuation.

Price Action: EYPT shares are up 7.68% at $7.15 on the last check Wednesday.