Up more than 30% already yesterday, shares of Clearside Biomedical Inc (NASDAQ:CLSD) notched another 19% gain in Tuesday’s trading session. Why the excitement? Yesterday, Clearside announced positive results in a late-stage trial of a treatment for macular edema associated with non-infectious uveitis, a swelling that affects the back of the eye. In addition, the drug maker announced today the enrollment of the first patient in a Phase 3 clinical trial of suprachoroidal CLS-TA used with an intravitreally administered anti-VEGF agent for the treatment of macular edema associated with Retinal Vein Occlusion.
While the stock seems to be on a run, this rally could be far longer, at least if you ask Wedbush’s Liana Moussatos. In a research note issued earlier today, the analyst reiterated an Outperform rating on CLSD, while raising her price target to $29 (from $27), which represents a potential upside of 135% from where the stock is currently trading. (To watch Moussatos’ track record, click here)
Moussatos commented, “In addition to several positive Phase 2 trials in ME-NIU, ME-RVO and DME, the PEACHTREE trial results represent the first clinical success at the Phase 3 level. Vision gain from suprachoroidal CLS-TA was observed as early as 30 days and maintained throughout the 6-month study. Due to the strength of the Phase 3 results, we consider clinical risk for the pipeline to be reduced.”
Furthermore, “Positive results from the pivotal Phase 3 PEACHTREE trial for CLS-TA in macular edema associated with non-infectious uveitis (ME-NIU) further validates Clearside’s suprachoroidal space (SCS)-microinjection technology and its ability to enhance the therapeutic benefit of a corticosteroid to treat macular edema associated with blinding diseases of the eye. With positive initial Phase 3 results, we increase our valuation multiple for CLS-TA in ME-NIU to 7X from 6X which raised our twelvemonth price target to $29.”
As of this writing, all the 6 analysts polled by TipRanks (in the past 12 months) rate Clearside Biomedical stock a Buy. With a return potential of 76%, the stock’s consensus target price stands at $21.80.