Hold Rating Issued for Opthea Limited Amid Uncertainty Following Phase 3 Trial Failure

In a report released today, Matthew Caufield from H.C. Wainwright maintained a Hold rating on Opthea Limited Sponsored ADR (OPT – Research Report), with a price target of $2.00.

Matthew Caufield has given his Hold rating due to a combination of factors surrounding the recent developments with Opthea Limited’s drug, sozinibercept. The failure of the Phase 3 COAST trial to meet its primary endpoint has cast uncertainty over the future of this therapy, which was initially promising due to its success in the Phase 2b trial. This unexpected outcome has led to a reassessment of the drug’s potential, as the trial did not achieve the anticipated visual acuity improvements.
In addition, the company is facing uncertainty regarding the next steps for its clinical trials and discussions with Development Funding Agreement investors, which could have significant financial implications. The suspension of trading in Opthea’s securities further adds to the uncertainty, as the company evaluates its strategic options. Given these factors, Caufield has adjusted the price target to $2 and adopted a more cautious stance with a Hold rating, awaiting further clarity on the company’s future direction.

In another report released yesterday, Leerink Partners also downgraded the stock to a Hold with a $1.00 price target.