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Ocular Therapeutix (OCUL)
NASDAQ:OCUL
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Ocular Therapeutix
(NASDAQ:OCUL)
54Neutral
Positive Factors
Clinical Trials
The ongoing Phase 3 SOL-R trial has reduced its enrollment target from 825 subjects to 555, which should accelerate the trial timeline.
Financial Stability
OCUL ended 2024 with $392M in cash, which management expects to be sufficient runway into 2028, beyond anticipated readouts in both SOL-1 and SOL-R.
Negative Factors
Financial Performance
Total revenue was $15.4M, representing 2.3% YoY growth yet missing our projection of $16.8M.
Ocular Therapeutix (OCUL) vs. S&P 500 (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue Growth9.03%
EPS Growth-25.00%
CountryUS
Employees267
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.26
Shares Outstanding159,022,250
10 Day Avg. Volume2,032,793
30 Day Avg. Volume1,331,941
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)21.24
Price to Cash Flow (P/CF)-8.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.89Price Target Upside127.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Ocular Therapeutix Business Overview & Revenue Model
Company DescriptionOcular Therapeutix, Inc. is a biopharmaceutical company, which engages in the development and commercialization of therapies for diseases and conditions of the eye. Its product pipeline include Dextenza, OTX-TP, and OTX-TIC . The company was founded by Amarpreet S. Sawhney and Farhad Khosravi on September 12, 2006 and is headquartered in Bedford, MA.
How the Company Makes MoneyOcular Therapeutix generates revenue primarily through the sale of its FDA-approved product, DEXTENZA, to healthcare providers, including hospitals, ambulatory surgery centers, and eye care specialists. The company also seeks to monetize its pipeline of sustained-release drug delivery solutions by progressing candidates through clinical trials and obtaining regulatory approvals. In addition to direct product sales, Ocular Therapeutix may earn revenue from licensing agreements, collaborations, and partnerships with other pharmaceutical companies, enabling them to leverage its proprietary technologies. These partnerships can provide upfront payments, milestone payments, and royalties based on product sales, contributing to the company's earnings.
Ocular Therapeutix Financial Statement Overview
Summary
Ocular Therapeutix shows strong revenue growth and a solid equity base but faces profitability challenges with negative net income and cash flow issues. Sustaining growth while achieving profitability is critical.Income Statement
Ocular Therapeutix has shown consistent revenue growth over the years, with Total Revenue increasing from $4.2 million in 2019 to $63.5 million in 2024. However, the company has been unable to achieve profitability, with negative EBIT and Net Income in all years. Gross Profit Margin remains high at approximately 91% for 2024, but the Net Profit Margin is negative due to high operating expenses.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with Stockholders' Equity growing to $315 million in 2024. The Debt-to-Equity Ratio is relatively low at 0.24, indicating manageable leverage. However, the Equity Ratio is approximately 69%, showing a healthy balance of assets funded by equity. Despite this, the company has a history of negative net income, which could eventually impact equity if not addressed.50
Neutral
Cash Flow
Ocular Therapeutix's cash flow statement reveals challenges in generating positive cash flows, with Free Cash Flow remaining negative throughout the years. The Operating Cash Flow to Net Income Ratio is negative, indicating cash outflows exceed net income losses. The company raised significant financing in 2024, which temporarily boosts liquidity but does not resolve underlying cash flow issues.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 63.72M | 58.44M | 51.49M | 43.52M | 17.40M | Gross Profit |
| 58.10M | 53.16M | 46.95M | 39.12M | 15.32M | EBIT |
| -171.78M | -82.38M | -78.65M | -78.04M | -62.85M | EBITDA |
| -176.14M | -66.42M | -61.91M | -75.62M | -146.09M | Net Income Common Stockholders |
| -193.51M | -80.74M | -63.42M | -10.80M | -159.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 392.10M | 195.81M | 102.30M | 164.16M | 228.06M | Total Assets |
| 457.94M | 252.06M | 149.29M | 204.89M | 261.86M | Total Debt |
| 75.78M | 83.39M | 64.28M | 58.98M | 58.44M | Net Debt |
| -316.32M | -112.42M | -38.02M | -105.18M | -169.62M | Total Liabilities |
| 142.59M | 160.93M | 113.91M | 116.89M | 185.77M | Stockholders Equity |
| 315.34M | 91.13M | 35.38M | 88.00M | 76.09M |
| Cash Flow | Free Cash Flow | |||
| -135.97M | -76.32M | -63.32M | -66.74M | -54.40M | Operating Cash Flow |
| -134.68M | -70.23M | -59.60M | -65.55M | -53.55M | Investing Cash Flow |
| -1.29M | -6.09M | -3.71M | -1.19M | -841.00K | Financing Cash Flow |
| 332.11M | 169.83M | 1.45M | 2.85M | 228.01M |
Ocular Therapeutix Technical Analysis
Positive
7.88
Price Trends
7.75
Positive
8.81
Negative
8.29
Positive
Market Momentum
0.05
Negative
62.85
Neutral
92.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCUL, the sentiment is Positive. The current price of 7.88 is above the 20-day moving average (MA) of 7.23, above the 50-day MA of 7.75, and below the 200-day MA of 8.29, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 92.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCUL.
Ocular Therapeutix Risk Analysis
Ocular Therapeutix disclosed 50 risk factors in its most recent earnings report. Ocular Therapeutix reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ocular Therapeutix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $1.35B | ― | -95.21% | ― | 9.03% | -25.00% | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% | |
48 Neutral | $503.78M | ― | -43.42% | ― | -5.97% | -25.87% | |
47 Neutral | $190.93M | ― | -67.62% | ― | 346.02% | 28.96% | |
44 Neutral | $413.18M | ― | -58.54% | ― | ― | -47.28% | |
42 Neutral | $42.06M | ― | -430.96% | ― | ― | 70.70% |
* Healthcare Sector Average
Performance Comparison
OCUL
Ocular Therapeutix
7.88
-1.38
-14.90%
EYPT
EyePoint Pharmaceuticals
6.83
-14.91
-68.58%
ALDX
Aldeyra Therapeutics
6.81
4.04
145.85%
PRQR
ProQR
1.74
-0.58
-25.00%
KALA
Kala Pharmaceuticals
6.75
-0.88
-11.53%
Ocular Therapeutix Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: 10.36% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress with FDA approvals and strong trial retention. Financial stability and expansion opportunities in additional indications were also emphasized. However, there were delays in timeline for topline data and a reduction in trial size, indicating some operational adjustments.Highlights
FDA Approval for Amendment to SOL-1 Protocol
Received FDA approval for an amendment in SOL-1 to incorporate redosing at weeks 52 and 76, potentially increasing label flexibility to every six to 12 months.
Completion of SOL-1 Randomization
SOL-1 trial completed randomization ahead of schedule in December 2024 with 344 subjects.
Strong Patient Retention in SOL-1
Reported exceptional patient retention in SOL-1, with most rescue treatments aligning with prespecified criteria.
Financial Position and Cash Runway
Cash balance of $392 million as of December 31, 2024, with a cash runway into 2028.
Expansion Opportunities in NPDR and DME
Positive results from the HELIOS trial in NPDR and DME, with FDA feedback on clinical trial design expected in the first half of 2025.
Lowlights
Delayed SOL-1 Topline Data
Topline data for SOL-1, including the 36-week primary endpoint, now expected in the first quarter of 2026 due to the need to maintain masking until week 52.
Reduction in SOL-R Trial Size
SOL-R trial size reduced from 825 to 555 subjects, potentially impacting the robustness of the data set.
Company Guidance
During the Ocular Therapeutix Fourth Quarter 2024 Earnings Conference Call, significant updates were shared regarding the registrational program for AXPAXLI in wet AMD. The FDA approved an amendment to the SOL-1 study's special protocol agreement, allowing redosing at weeks 52 and 76, aiming to secure a six to 12-month dosing label. This amendment is expected to enhance the drug's potential as a long-lasting treatment option. As a result, topline data for SOL-1 is now anticipated in the first quarter of 2026. The SOL-R study was optimized, reducing its size from 825 to 555 subjects while maintaining a robust statistical power of 90%. This change aims to accelerate the timeline for reporting data and regulatory submission. The company reported strong financial health with a cash balance of $392 million, projecting sufficient funding into 2028 without plans to raise additional capital in 2025.Ocular Therapeutix Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ocular Therapeutix Approves New CEO Compensation Package
Positive
Feb 14, 2025
On February 11, 2025, Ocular Therapeutix’s Board of Directors approved a new compensation package for Pravin Dugel, M.D., reflecting his expanded roles as Chairman, President, and CEO since April 2024. The package includes an increased annual salary, bonus, and significant long-term equity awards tied to stock performance, aligning Dugel’s interests with shareholders and incentivizing company growth. This strategic move underscores Ocular Therapeutix’s commitment to rewarding leadership and performance, potentially enhancing its competitive edge in the biopharmaceutical sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.