H.C. Wainwright Reiterates Upbeat View of EyePoint Pharmaceuticals (EYPT) Stock on Back of FDA Approval
EyePoint Pharmaceuticals (EYPT) has a big reason to celebrate this week — the Food and Drug Administration (FDA) approved the vision-improving technology. The fluocinolone acetonide intravitreal implant, also called YUTIQ treats uveitis, the third most popular cause of blindness. The approval actually comes early, ahead of the Prescription Drug User Fee Act review, which was scheduled for November 5th.
H.C Wainwright analyst Raghuram Selvaraju points out that the implant is similar to one on the market that already sells for $8,800 in the U.S. Selvaraju believes YUTIQ could bring in annual sales of more than $100M dollars.
As such, Selvaraju reiterates a Buy rating on EYPT stock with a price target of $4.50, which implies about 50% upside from current levels. (To watch Selvaraju’s track record, click here)
This is EYPT’s second success this year. In February, the eyecare company gained FDA approval for DEXYCU, a single-dose treatment for post-cataract surgery.
“Together with DEXYCU for postoperative ocular inflammation, the company now has two approved products that are slated to be commercially launched in 1H19. In the wake of this update, we have increased the probability of success for YUTIQ from 90% to 100%. Accordingly, our estimated market value of the firm has increased from $415M to $430M,” Selvaraju said.
While the pharmaceutical is moving ahead in the states, the process is a bit slower across the pond. The European Union’s regulation agency requested follow-up data that are expected to be available in Q418 and 1H19. It includes 24-month and 36-month data from the company’s phase 3 trial for YUTIQ. Overall, the analyst expects official EU approval in 2019.
Wall Street is certainly ready for these products to hit the market. Out of 3 analysts who kept an eye on the stock in the last 12 months, TipRanks finds that all 3 are bullish on the stock. The consensus price target stands at $4.83, which represents a 63% jump from where the stock is currently trading. (See EYPT’s price targets and analyst ratings on TipRanks)