Ophthotech Corp (NASDAQ:OPHT)

Ophthotech Corp (NASDAQ:OPHT) Earnings Surprise!

Ophthotech Corp (NASDAQ:OPHT)

This morning, Ophthotech Corp (NASDAQ:OPHT) shares jumped up off their 52-week lows to gap up and open higher on the company’s earnings release. Early volume has been heavy – over 30 times the daily pro-rated average. The price action follows the company earnings announcement that saw Q3 net income of $189.1 million, or $5.25 per share, on $206.7 million in revenues. Ophthotech Corp (NASDAQ:OPHT) is a biopharmaceutical company, headquartered in New York city, specializing in the development of novel therapeutics for age-related and orphan diseases of the eye.

Glenn P. Sblendorio, Chief Executive Officer and President of Ophthotech commented on the earnings announcement – “We have progressed in all of our clinical programs by initiating new trials and modifying a current clinical trial. We remain on track to have four trials ongoing by the end of the year.”

Ophthotech Corp (NASDAQ:OPHT)

Ophthotech Business Update

Ophthotech modified its on-going Zimura (avacincaptad pegol) clinical trial for the treatment of geographic atrophy (GA) secondary to dry age related macular degeneration (AMD). This on-going clinical trial is designed to assess the safety and efficacy of Zimura monotherapy in patients with GA. The company has modified the design of the trial to accelerate the anticipated timeline for obtaining top-line data. This was accomplished by restriucting the number of enrollees to 200.

During the third quarter, Ophthotech Corp (NASDAQ:OPHT) initiated a new dose-ranging, open-label Phase 2a clinical trial of Zimura in combination with Lucentis® in patients with wet AMD who have not been previously treated with any anti-VEGF agents. Approximately 60 patients will be enrolled and treated for 6 months. Based on the anticipated enrollment rate, Ophthotech expects initial top-line data to be available by the end of 2018.

Before the end of 2017, an open-label Phase 2a clinical trial will begin that evaluates Zimura, in combination with Eylea®, for the treatment of idiopathic polypoidal choroidal vasculopathy (IPCV) in treatment experienced patients. Approximately 20 patients will be enrolled and treated for a duration of 9 months. Initial top-line data is expected to be available during the second half of 2019.

OPHT Stock Performance

Today’s earnings announcement is very welcome news from shareholders that had seen a year in which OPHT stock had lost over 90% of its value. The value of the shares has dropped on a year-to-date, quarterly, and monthly basis.

Most recently, OPHT stock was touching its 52-week low of $2.24. That price is a 90+% drop from its 52-week high of $40.34.

Five investment firms follow Ophthotech Corp (NASDAQ:OPHT). All five rate OPHT stock a “Hold” with a one-year consensus price target of $5.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $OPHT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Ophthotech Corp (NASDAQ:OPHT)

Ophthotech Corp (NASDAQ:OPHT) Lower On AMD Drug and Partnership Concerns

Ophthotech Corp (NASDAQ:OPHT)

Ophthotech Corp (NASDAQ:OPHT) shares declined 14.52% after Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) said its drug for vision loss did not meet its primary endpoint in clinical trials. The ripple effect comes on the heels of the biopharmaceutical company also announcing that a Phase 3 trial of its main candidate drug for the condition, Fovista, failed to meet primary endpoints in two trials.

Opthotech Stock Performance

Last week’s sell-off brought to an end August bullish run that saw the stock add about 7.4 in market value. The stock is currently trading in a strong downtrend in a $2.59-$3.11 trading range. The stock has underperformed the overall industry after shedding more than 90% in market value since the start of the year.

A study of Fovista for the treatment of age-related macular degeneration turned out to be a disappointment as no statistical significance was observed with the drug combination. Disappointing clinical trials have been the biggest undoing for Ophthotech Corp (NASDAQ:OPHT) – thus fuelling a sell-off wave that has pushed the stock from highs of $40 a share to current lows of $2.65.

Following two successive disappointing clinical trials, investors have already started to question the future of an ongoing collaboration with Novartis AG (ADR) (NYSE:NVS).

Ophthotech Corp (NASDAQ:OPHT)
One month OPHT stock price chart

Novartis Agreement Uncertainty

Novartis has already suspended a large part of the agreement that touched on the commercialization of the drug outside the U.S. The giant drug maker insists that the AMD drug will have to prove itself in clinical trials if the licensing agreement is to hold.

Concerns that Novartis could pull away from the deal continues to fuel the sell-off of Ophthotech Corp (NASDAQ:OPHT) stock. Such a move could be catastrophic given that the company derives a good chunk of its revenues from milestones and other payments from collaborations.

Collaborations revenue declined 94% in the recent quarter to $1.7 million – an indication of how things could turn sour if Novartis pulls the plug. Ophthotech Corp (NASDAQ:OPHT) reported a net loss of (-$0.62) a share or the second quarter narrower than a net loss of (-$1.07) a share that analysts were expecting. The company exited the quarter with cash and cash equivalent of $196 million which is sufficient to fund operations over the next 12 months.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $OPHT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.