Ocular Therapeutix Inc (NASDAQ:OCUL) shares popped nearly 14% yesterday, after the biopharmaceutical company announced a $10 million drug development deal with Regeneron Pharmaceuticals Inc (NASDAQ:REGN) focusing on developing a sustained-release formulation of Eylea for wet AMD and other serious retinal diseases. Under the option and licensing agreement, Ocular could qualify for milestone payments of up to $305M and high single-digit to low-to-mid teen-digit royalties on net product sales.
In reaction, BTIG analyst Ling Wang reiterated a Buy rating on shares of Ocular Therapeutix, with a price target of $18, which implies an upside of 170% from current levels. Wang noted, “We view the deal with an industry leader like REGN as external validation for OCUL’s platform technology. If successfully developed, the sustained-release depot could potentially reduce the dosing frequency substantially, thereby reducing treatment burden of antiVEGF agents, as well as potentially extend patent protection.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ling Wang has a yearly average return of -19.6% and a 25% success rate. Wang has a 55.4% average return when recommending OCUL, and is ranked #4067 out of 4182 analysts.
As of this writing, all the 4 analysts polled by TipRanks rate Ocular Therapeutix stock a Buy. With a return potential of 260%, the stock’s consensus target price stands at $24.