In a report released on February 7, Yi Chen from H.C. Wainwright reiterated a Buy rating on OKYO Pharma Limited Sponsored ADR (OKYO – Research Report), with a price target of $7.00.
Yi Chen has given his Buy rating due to a combination of factors surrounding OKYO Pharma’s development of OK-101 for treating neuropathic corneal pain (NCP). The Phase 2a trial for OK-101 is expected to complete enrollment by the second quarter of 2025, with topline data anticipated by the fourth quarter of the same year. OK-101’s status as the first NCP drug candidate to receive FDA IND clearance marks a significant milestone, as there currently are no FDA-approved therapies for NCP, which affects patients with nerve damage and inflammation in the cornea.
Yi Chen acknowledges that OK-101 has shown promising safety and efficacy profiles in treating dry eye disease, suggesting potential effectiveness for NCP as well. Despite the company’s need for additional capital to fund operations within the next 12 months, Chen’s $7 price target is based on a calculated market value of $300M for OK-101, factoring in a 15% discount rate and a 1% terminal growth rate. However, the recommendation comes with risks, including the possibility of clinical trial failure, regulatory hurdles, and market competition impacting commercial success.
OKYO’s price has also changed moderately for the past six months – from $1.000 to $1.120, which is a 12.00% increase.
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