Oppenheimer more bullish on Aldeyra, upgrades to Outperform

As previously reported, Oppenheimer upgraded Aldeyra (ALDX) to Outperform from Perform with a $10 price target. Following the CRL in November 2023 requiring symptom trial, management disclosed its dry eye chamber design of Reproxalap, with ocular discomfort as the primary endpoint. Additionally, the firm considers the company’s plans to simultaneously conduct two backup trials as prudent. Oppenheimer views the upcoming chamber trial as derisked, considering the statistically significant difference in previous ocular discomfort data. Given Reproxalap’s already differentiated product profile, the revised clinical development plan, and Aldeyra’s strong balance sheet, the firm’s confidence in Reproxalap’s regulatory approval potential is renewed, Oppenheimer to change its rating to Outperform without even accounting for the AbbVie (ABBV) option agreement.