Opthea cut to Market Perform at Leerink on failed sozinibercept trial

Leerink downgraded Opthea (OPT) to Market Perform from Outperform with a price target of $1, down from $12. The firm cites the company announcing that its Phase 3 COAST trial of sozinibercept in combination with Eylea in wet age-related macular degeneration failed to meet its primary endpoint, which is “disappointing”, the analyst tells investors in a research note. There were no numerical differences observed in the primary and key secondary endpoints, which bodes negatively for the upcoming readout of the ShORe trial of sozinibercept in combination with Lucentis, the firm adds. Opthea has not made a decision yet whether to discontinue the COAST OLE trial or accelerate and unmask the ShORe and is continuing its discussions with the DFA investors in the meantime, Leerink stated.