In a report released yesterday, Marc Goodman from Leerink Partners downgraded Opthea Limited Sponsored ADR (OPT – Research Report) to a Hold, with a price target of $1.00.
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Marc Goodman has given his Hold rating due to a combination of factors surrounding Opthea Limited Sponsored ADR. The primary reason for the rating is the failure of the Phase 3 COAST trial, which tested sozinibercept in combination with Eylea for treating wet age-related macular degeneration. This trial did not achieve its primary endpoint, leading to concerns about the efficacy of the treatment.
Additionally, the company is facing potential financial challenges due to the Development Funding Agreement, which could require significant repayment if the agreement is terminated. This financial uncertainty, coupled with the company’s current cash position and restrictions on further financing, adds to the risk profile of the stock. As a result, the stock’s price target has been significantly reduced, reflecting these concerns.