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EyePoint Pharmaceuticals Inc (EYPT)
NASDAQ:EYPT
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EyePoint Pharmaceuticals
(NASDAQ:EYPT)
48Neutral
Positive Factors
Clinical Trial Progress
The company's fast enrollment pace suggests a potential first-to-market advantage in the TKI race for wet AMD.
Financial Stability
The company has a cash runway into 2027, which supports its financial stability.
Market Valuation
The stock is considered significantly undervalued, presenting a positive risk/reward scenario.
Negative Factors
Financial Performance
Net loss was $45.2M, moderately higher than the estimated loss of $42.9M.
Market Competition
Despite the market entry of Eylea biosimilar, Pabvlu (AMGN, Not rated), management expects minimal impact on Duravyu due to its different MOA and durability, which will favor payor negotiations.
Patient Costs
Suspension of the Good Days copay assistance program is increasing out-of-pocket costs for branded wet AMD drugs, benefiting enrollment since study drugs are provided free of cost.
EyePoint Pharmaceuticals (EYPT) vs. S&P 500 (SPY)
Market Cap
$421.82M
Dividend YieldN/A
Average Volume (3M)779.59K
Price to Earnings (P/E)―
Beta (1Y)2.20
Revenue Growth12.04%
EPS Growth-31.81%
CountryUS
Employees165
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.65
Shares Outstanding68,811,740
10 Day Avg. Volume669,893
30 Day Avg. Volume779,589
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.98
Price to Sales (P/S)0.00
P/FCF Ratio-3.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.57Price Target Upside415.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EyePoint Pharmaceuticals Business Overview & Revenue Model
Company DescriptionEyePoint Pharmaceuticals (EYPT) is a specialty biopharmaceutical company focused on developing and commercializing innovative ophthalmic products for the treatment of serious eye disorders. The company leverages its proprietary drug delivery technologies to create long-lasting therapies that address unmet medical needs in the field of ophthalmology. EyePoint Pharmaceuticals primarily serves the healthcare sector, targeting both patients and healthcare providers with its advanced treatments.
How the Company Makes MoneyEyePoint Pharmaceuticals generates revenue through the sale and licensing of its ophthalmic products, primarily targeting serious eye conditions such as uveitis and macular edema. The company's revenue streams include product sales, royalties, and milestone payments from licensing agreements with other pharmaceutical companies. EyePoint collaborates with strategic partners to enhance its distribution and expand its market reach, thereby increasing its revenue potential. Additionally, the company's proprietary drug delivery technologies contribute to its earnings by providing a competitive edge in developing long-lasting treatments, which are sought after in the ophthalmology market.
EyePoint Pharmaceuticals Financial Statement Overview
Summary
EyePoint Pharmaceuticals faces challenges with declining revenue, negative profit margins, and cash flow issues despite a strong equity position. High operational losses and reliance on external financing could pose risks unless revenue growth and efficiency improve.Income Statement
The company has shown a decline in total revenue from $46.02M to $43.27M, resulting in a negative revenue growth rate. Gross profit margin is high at 91.4% due to relatively low cost of goods sold. However, significant losses are evident with a net profit margin of -302.4% and EBIT margin of -336.9%, indicating challenges in operational efficiency and profitability.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with a high equity ratio of 80.4%. The debt-to-equity ratio is 0.065, indicating low leverage. However, consistent net losses are impacting return on equity, with a negative ROE of -38.9%, raising concerns about sustainable profitability.50
Neutral
Cash Flow
The cash flow situation is concerning, with negative operating cash flow of -$126.23M and free cash flow of -$130.28M, indicating significant cash outflows. The operating cash flow to net income ratio is 0.96, suggesting operating inefficiencies. Significant financing activities to cover expenses are evident.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 43.27M | 46.02M | 41.40M | 36.94M | 34.44M | Gross Profit |
| 39.56M | 41.39M | 33.08M | 28.76M | 28.61M | EBIT |
| -145.85M | -75.07M | -78.94M | -55.28M | -37.29M | EBITDA |
| -129.23M | -69.00M | -96.62M | -50.15M | -35.49M | Net Income Common Stockholders |
| -130.87M | -70.80M | -124.51M | -63.91M | -52.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 370.91M | 331.05M | 144.56M | 211.56M | 44.91M | Total Assets |
| 418.46M | 355.18M | 180.36M | 263.37M | 91.72M | Total Debt |
| 21.86M | 4.91M | 45.77M | 38.42M | 40.31M | Net Debt |
| -77.85M | -276.36M | -49.86M | -140.17M | -4.60M | Total Liabilities |
| 81.96M | 88.86M | 83.99M | 78.99M | 73.18M | Stockholders Equity |
| 336.50M | 266.32M | 96.37M | 184.38M | 18.54M |
| Cash Flow | Free Cash Flow | |||
| -130.28M | -1.61M | -67.16M | -50.25M | -14.80M | Operating Cash Flow |
| -126.23M | 1.88M | -65.00M | -50.10M | -14.44M | Investing Cash Flow |
| -219.35M | -3.31M | -17.27M | -33.12M | -362.00K | Financing Cash Flow |
| 164.02M | 187.07M | -690.00K | 216.90M | 37.49M |
EyePoint Pharmaceuticals Technical Analysis
Neutral
6.13
Price Trends
6.05
Positive
6.64
Negative
7.88
Negative
Market Momentum
-0.04
Positive
50.67
Neutral
27.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EYPT, the sentiment is Neutral. The current price of 6.13 is below the 20-day moving average (MA) of 6.34, above the 50-day MA of 6.05, and below the 200-day MA of 7.88, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 27.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EYPT.
EyePoint Pharmaceuticals Risk Analysis
EyePoint Pharmaceuticals disclosed 55 risk factors in its most recent earnings report. EyePoint Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EyePoint Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $376.19M | ― | -10.98% | ― | 3.15% | 61.71% | |
56 Neutral | $445.93M | ― | -47.44% | ― | 80.70% | 46.66% | |
54 Neutral | $473.53M | ― | -204.78% | ― | 44.92% | -40.06% | |
52 Neutral | $5.15B | 3.02 | -44.64% | 2.83% | 16.44% | -0.47% | |
50 Neutral | $579.59M | ― | -159.34% | ― | -48.97% | 69.32% | |
48 Neutral | $421.82M | ― | -53.54% | ― | 12.04% | -31.81% | |
37 Underperform | $129.37M | ― | -65.19% | ― | ― | -47.28% |
* Healthcare Sector Average
Performance Comparison
EYPT
EyePoint Pharmaceuticals
6.13
-6.01
-49.51%
TBRG
TruBridge
25.04
16.04
178.22%
ALDX
Aldeyra Therapeutics
2.16
-1.87
-46.40%
ZVRA
Zevra Therapeutics
8.66
3.97
84.65%
RGNX
RegenXBio
8.89
-6.98
-43.98%
TSHA
Taysha Gene Therapies
2.70
-0.39
-12.62%
EyePoint Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -1.92%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, driven by strong clinical trial enrollment, promising clinical results, and a solid financial position. Despite increased operating expenses and net loss, the company maintains confidence in its strategic focus and potential market opportunities for DURAVYU.Q1-2025 Updates
Positive Updates
Strong Enrollment in Phase 3 Trials
The LUGANO trial has randomized over 90% of patients, while the LUCIA trial has randomized over 50%. Enrollment is significantly ahead of expectations, indicating strong interest and support from both patients and physicians.
Positive Clinical Results for DURAVYU
DURAVYU demonstrated impressive efficacy in the Phase II DAVIO 2 trial, with approximately 2/3 of patients remaining rescue-free for six months and nearly half for one year. The drug also showed a favorable safety profile with no related SAEs.
Financial Position and Guidance
EyePoint ended the first quarter with $318.2 million in cash and investments, affirming guidance that this will support operations into 2027. Total net revenue for the quarter was $24.5 million, a significant increase from $11.7 million the previous year.
Potential Market Opportunities for DURAVYU
DURAVYU is positioned as a differentiated treatment in a multibillion-dollar market for wet AMD and DME, supported by positive Phase 2 results in DME, representing a $3 billion opportunity by 2030.
Negative Updates
Increased Operating Expenses
Operating expenses for the quarter increased to $73.3 million from $45 million in the prior year period, primarily driven by the ongoing LUGANO and LUCIA Phase 3 trials.
Net Loss Increase
The company reported a net loss of $45.2 million for the quarter, up from $29.3 million in the previous year, partially due to increased R&D expenses.
Potential Impact of Biosimilars
There is uncertainty regarding the impact of biosimilars on the wet AMD market. While EyePoint is confident in DURAVYU's differentiated profile, the overall market dynamics with biosimilars remain a consideration.
Company Guidance
During the EyePoint First Quarter 2025 conference call, the company provided comprehensive guidance on its lead program, DURAVYU, highlighting significant clinical and financial metrics. The company reported that over 90% of patients have been randomized into the LUGANO trial and over 50% into the LUCIA trial, with enrollment completion expected in the second half of 2025. EyePoint's cash reserves stood at $318.2 million, expected to support operations into 2027. Total net revenue for Q1 2025 was $24.5 million, marking an increase from $11.7 million in the same quarter of 2024. Despite a net loss of $45.2 million, EyePoint remains optimistic about DURAVYU's potential, supported by its robust Phase I and Phase II data sets and a favorable safety profile. The company anticipates top-line data from the Phase 3 trials in the latter half of 2026 and is also exploring the drug's potential in diabetic macular edema, with positive Phase 2 results reinforcing its commercial viability in a multibillion-dollar market.EyePoint Pharmaceuticals Corporate Events
Business Operations and StrategyFinancial Disclosures
EyePoint Pharmaceuticals Reports Q1 2025 Financial Results
Positive
May 7, 2025
On May 7, 2025, EyePoint Pharmaceuticals announced its first quarter 2025 financial results and recent corporate developments. The company reported significant progress in its Phase 3 trials for DURAVYU in wet AMD, with enrollment exceeding expectations, positioning DURAVYU for a potential first-to-market advantage. Additionally, EyePoint highlighted compelling data from the Phase 2 VERONA trial in DME, reinforcing DURAVYU’s potential as a paradigm-shifting treatment. Financially, EyePoint reported increased net revenue primarily due to deferred revenue recognition from a previous out-license agreement, despite a net loss for the quarter. The company maintains a strong cash position, expected to fund operations into 2027.
Spark’s Take on EYPT Stock
According to Spark, TipRanks’ AI Analyst, EYPT is a Neutral.
EyePoint Pharmaceuticals is currently facing significant financial challenges, including declining revenue and high operational losses, which are reflected in its low financial performance and valuation scores. While there is some optimism from their clinical trial advancements and strong cash position, the negative technical indicators and lack of profitability weigh heavily on the stock’s overall score.
To see Spark’s full report on EYPT stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.