I am bullish on Ocuphire Pharma, Inc. (OCUP), as its attractive stock price and high potential pipeline suggests promising potential.
Ocuphire is a clinical-stage biopharmaceutical company that is engaged in developing and selling therapies for the treatment of various eye disorders.
The company’s primary products are Nyxol eye drops, and APX3330 oral tablets. (See OCUP stock charts on TipRanks)
Strengths
The main value for Ocuphire comes from its series of highly promising therapies, which are expected to translate into large cash flow streams for the company in the future.
Its lead product is the 0.75% phentolamine ophthalmic solution sold as Nyxol, which is currently in Phase 3 clinical trials. The formulation is designed to reduce pupil size, and has potential benefits for people who suffer from dim light and night vision disturbances (NVD), as well as pharmacologically induced pupil dilation and presbyopia.
The eye drops contain no preservatives, and can be used once a day, making them a convenient treatment for eye disorders.
The APX3330 oral tablet is Ocuphire’s second product to be evaluated for efficacy, currently in 11 Phase 1 and 2 trials. The tablet is being tested as a potential treatment for retinal and choroidal vascular diseases by inhibiting relevant pathways.
Recent Results
Ocuphire reported cash and equivalents of approximately $24.2 million for the quarter ended June 30, 2021. The company’s net operating cash for the second quarter of 2021 stood at $4.3 million, and collaboration revenue was $0.1 million.
The company also recorded general and administrative expenses for the second quarter of 2021, estimated at $3.4 million compared to $0.6 million in Q2 of last year.
Research and development expenses were $3.8 million for the three months ended June 30, 2021, an increase from $0.7 million a year ago. This increase was attributed to the four new clinical trials and production activities for Nyxol and APX3330, as well as pre-clinical, regulatory, and other activities related to development.
The report also revealed that the total loss from operations in the second quarter of 2021 was $7.1 million. This loss was $1.3 million in the same quarter of the previous year.
Valuation Metrics
Ocuphire stock looks attractively valued. While the company is not profitable at the moment, it has enormous profitability potential.
If its pipeline therapies deliver as promised, and the company can successfully avoid major shareholder dilution, investors may be able to reap huge rewards relative to Ocuphire’s current share prices.
Wall Street’s Take
From Wall Street analysts, Ocuphire earns a Strong Buy analyst consensus, based on three unanimous Buy ratings in the past three months. Additionally, the average OCUP price target of $28 puts the upside potential at 455%.
Summary and Conclusions
Ocuphire stock looks reasonably attractive at the moment, as Wall Street analysts are unanimously bullish on it.
Furthermore, the business has enormous upside potential thanks to its promising pipeline.
Disclosure: On the date of publication, Samuel Smith had no position in any of the companies discussed in this article.
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