Opus Genetics (IRD) AI Stock Analysis

• Market Cap: $60.26M
• Dividend Yield: N/A
• Average Volume (3M): 195.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -42.30%
• EPS Growth: -330.51%
• Country: US
• Employees: 18
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.24
• Shares Outstanding: 59,661,198
• 10 Day Avg. Volume: 186,867
• 30 Day Avg. Volume: 195,333
• PEG Ratio: <0.01
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: -0.13
• 1Y Price Target: $6.33
• Price Target Upside: 539.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Opus Genetics faces significant financial challenges, with declining revenues and persistent losses undermining its financial stability. The technical indicators suggest a bearish trend, while the negative corporate event further highlights financing difficulties. These factors contribute to a low overall score, indicating a high-risk investment with uncertain prospects.

Positive Factors

Financial Backing

The company's strategic focus is supported by a $20 million public offering and private placement financing, underscoring strong backing for its ongoing projects.

Gene Therapy Progress

Early benefit in visual function and clean safety profile observed in the first patient at Month-1 keeps us optimistic that 3Q25 dataset will better showcase the therapy's potential in this rare indication with high unmet needs.

Strategic Partnerships

The partnership for phentolamine ophthalmic solution, funded by Viatris, adds diversity to the company’s pipeline and offers multiple upcoming data catalysts.

Negative Factors

Increased Expenditures

Our FY25E G&A projection is now at $25mn (up from prior estimate of $14mn), which indicates increased expenditures.

Pipeline Challenges

Presbyopia treatment can gain investor attention with the pivotal Phase 3 VEGA-3 trial of phentolamine ophthalmic solution anticipated to have its topline results, addressing common age-related farsightedness.

Valuation Concerns

Following these updates and accounting for recent dilution, our DCF-based PT is at $5, down from $8.

Opus Genetics Business Overview & Revenue Model

Company Description

Opus Genetics, Inc., a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. The company offers Phentolamine Ophthalmic Solution for reversal of mydriasis, as well as is in Phase III clinical trials for presbyopia and dim light or night vision disturbances. Its lead retinal product candidate is APX3330, a small-molecule inhibitor of reduction oxidation effector factor-1 protein that has completed Phase II clinical trial for the treatment of diabetic retinopathy. The company also develops APX2009 and APX2014 that are preclinical product candidates for retina indications. The company was formerly known as Ocuphire Pharma, Inc. Opus Genetics, Inc. was founded in 2018 and is headquartered in Farmington Hills, Michigan.

How the Company Makes Money

Opus Genetics generates revenue primarily through the development and commercialization of its gene therapy products. The company monetizes its innovations by partnering with larger pharmaceutical companies for the co-development and licensing of its therapies. These partnerships often involve upfront payments, milestone payments, and royalties on sales. Additionally, Opus Genetics may receive funding from grants, research collaborations, and venture capital investments to support its research and development efforts.

Opus Genetics Financial Statement Overview

Summary

Opus Genetics is facing significant financial headwinds with declining revenues, persistent losses, and negative cash flows. While the absence of debt is a strength, the company's operational inefficiencies and declining equity raise concerns about its long-term viability. Strategic improvements are necessary to stabilize and improve its financial health.

Income Statement

Opus Genetics shows a volatile revenue trend with significant declines in 2023 and 2024 after a peak in 2022. The company has consistently posted negative net income, indicating persistent unprofitability. The gross profit margin remains high due to the absence of cost of goods sold, but negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a strong equity position in 2022, which sharply declined in 2023 and 2024 due to accumulated losses. The company has no debt, which is a positive, but the declining stockholders' equity and recent negative equity in 2020 raise concerns about financial stability.

Cash Flow

Operating cash flow has been negative for the past two years, reflecting operational inefficiencies. Free cash flow has worsened significantly in 2024, indicating cash burn issues. The operating cash flow to net income and free cash flow to net income ratios highlight the company's struggle to convert income into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.99M	19.05M	39.85M	589.00K	0.00
	Gross Profit
10.98M	19.05M	39.85M	589.00K	0.00
	EBIT
-62.07M	-10.56M	18.23M	-22.70M	-19.97M
	EBITDA
-57.52M	-9.97M	18.22M	-56.69M	-17.77M
	Net Income Common Stockholders
-57.53M	-9.99M	17.89M	-56.69M	-24.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.32M	50.52M	42.68M	24.75M	16.40M
	Total Assets
36.86M	53.95M	48.99M	26.08M	17.68M
	Total Debt
0.00	0.00	0.00	538.00K	0.00
	Net Debt
-30.32M	-50.50M	-42.63M	-24.00M	-16.40M
	Total Liabilities
30.14M	4.04M	2.75M	3.85M	31.15M
	Stockholders Equity
6.72M	49.91M	46.24M	22.22M	-13.47M
Cash Flow		Free Cash Flow
-25.58M	-1.11M	14.31M	-19.37M	-6.80M
	Operating Cash Flow
-25.58M	-1.11M	14.31M	-19.37M	-6.80M
	Investing Cash Flow
1.21M	0.00	0.00	-100.00K	539.00K
	Financing Cash Flow
4.19M	8.98M	3.79M	27.61M	21.12M

Opus Genetics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRD, the sentiment is Positive. The current price of 0.99 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.93, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 49.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRD.

Opus Genetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	53 Neutral	$57.47M	―	-71.64%	―	-98.90%	-177.17%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
SPRO	48 Neutral	$38.54M	10.83	-107.28%	―	-71.68%	-397.61%
CELU	45 Neutral	$51.97M	―	-232.51%	―	138.11%	76.60%
IRD	44 Neutral	$60.26M	―	-229.30%	―	-42.30%	-330.51%
PRLD	35 Underperform	$52.15M	―	-81.44%	―	―	16.38%
ANTX	34 Underperform	$35.91M	―	-49.32%	―	―	38.98%

Opus Genetics Corporate Events

Opus Genetics Terminates Purchase Agreement with Lincoln Park

On April 2, 2025, Opus Genetics, Inc. announced the termination of its Purchase Agreement with Lincoln Park Capital Fund, LLC, which was initially established on August 10, 2023. The decision was influenced by current market dynamics, particularly the limited value of the facility due to the current market price of the company’s stock. Prior to the termination, Opus Genetics had issued 1,700,000 shares, generating approximately $5.2 million in net proceeds, leaving about $44.8 million in shares unsold under the agreement.