Jefferies sees promise in Opthea's lead chronic eye disorder drug

Opthea

24/01/2023 19:53

** U.S.-listed shares of Australian drug developer Opthea
Limited  OPT.O  rise 2.2% to ~$5
    ** Brokerage Jefferies initiates OPT's coverage with "buy"
rating and sets $14 PT 
    ** Believes that even a small fraction of market penetration
represents significant opportunity for co's lead drug, OPT-302,
to treat wet age-related macular degeneration (wAMD)
    ** Says OPT's drug has proven to bring additional clinical
benefit when used in combination with Novartis AG's  NOVN.S 
anti-VEGF (vascular endothelial growth factor) drug Lucentis, in
a mid-stage trial 
    ** Anti-VEGF drugs are a group of medicines that reduce new
blood vessel growth, which make them useful for treating related
eye conditions 
    ** Jefferies conservatively sees peak sales at $710 mln
based only in VEGF-A, non-responsive patients, with less severe
lesion types; VEGF-A is the most dominant inducer to the growth
of blood vessels
    ** Brokerage watching the two ongoing late-stage trials for
the drug tested in combination with Lucentis and Regeneron
Pharmaceuticals Inc's  REGN.O  Eylea; data expected in mid-2024 
    ** OPT stock fell ~29% in 2022 
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))