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EyePoint Pharmaceuticals Inc (EYPT)
NASDAQ:EYPT
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EyePoint Pharmaceuticals
(NASDAQ:EYPT)
48Neutral
Positive Factors
Clinical Trials
Enrollment rates in Duravyu's Ph3 LUGANO & LUCIA trials in wet AMD continue to exceed expectations, with recruitment completion in both trials.
Financial Stability
EyePoint had $371mn in cash and investments, providing cash stability and ensuring financial security.
Negative Factors
Financial Performance
For 4Q24, net loss was $41.4M, which was more than the estimated loss of $29.4M.
EyePoint Pharmaceuticals (EYPT) vs. S&P 500 (SPY)
Market Cap
$487.29M
Dividend YieldN/A
Average Volume (3M)876.17K
Price to Earnings (P/E)―
Beta (1Y)2.29
Revenue Growth-5.97%
EPS Growth-25.87%
CountryUS
Employees121
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.31
Shares Outstanding68,728,760
10 Day Avg. Volume819,580
30 Day Avg. Volume876,172
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.72
Price to Cash Flow (P/CF)-3.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.83Price Target Upside360.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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
7.35
Price Trends
7.22
Positive
8.42
Negative
8.69
Negative
Market Momentum
-0.07
Negative
58.84
Neutral
85.58
Negative
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 7.35 is above the 20-day moving average (MA) of 6.40, above the 50-day MA of 7.22, and below the 200-day MA of 8.69, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 85.58 is Negative, 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 56 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $1.22B | ― | -95.21% | ― | 9.03% | -25.00% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
48 Neutral | $487.29M | ― | -43.42% | ― | -5.97% | -25.87% | |
44 Neutral | $395.27M | ― | -58.54% | ― | ― | -47.28% | |
42 Neutral | $129.44M | ― | -98.10% | ― | -58.64% | -40.05% | |
42 Neutral | $42.06M | ― | -430.96% | ― | ― | 70.70% |
* Healthcare Sector Average
Performance Comparison
EYPT
EyePoint Pharmaceuticals
7.35
-15.46
-67.78%
ALDX
Aldeyra Therapeutics
6.92
3.92
130.67%
OCUL
Ocular Therapeutix
8.51
-0.78
-8.40%
EDIT
Editas Medicine
1.47
-7.14
-82.93%
KALA
Kala Pharmaceuticals
6.90
-0.67
-8.85%
EyePoint Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 20.89% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials and a strong financial position, which were tempered by a decrease in revenue and increased operating expenses leading to a greater net loss. The advancements in clinical trials and robust financial backing are promising, yet the financial performance indicates some challenges.Highlights
Advancement and Positive Results in Clinical Trials
EyePoint advanced DURAVYU into Phase 3 clinical trials for wet AMD and reported positive 24-week Phase 2 results in Diabetic Macular Edema (DME), with strong data supporting the potential for pivotal trials.
Strong Enrollment in Phase 3 Trials
Both Phase 3 trials for wet AMD, LUGANO and LUCIA, have surpassed enrollment expectations, with LUGANO well over 50% enrolled. Enrollment completion is expected in the second half of 2025.
Solid Financial Position
EyePoint ended 2024 with $371 million in cash and investments and no debt, bolstered by a $161 million oversubscribed equity offering.
Positive Phase 2 VERONA Clinical Trial Results
DURAVYU met primary and key secondary endpoints in the Phase 2 VERONA trial for DME, showing significant improvement in best corrected visual acuity and central subfield thickness compared to control.
Lowlights
Decrease in Total Net Revenue
Total net revenue for the quarter ended December 31, 2024, was $11.6 million compared to $14 million for the same period in 2023, primarily due to lower recognition of deferred revenue from YUTIQ product rights.
Increased Operating Expenses
Operating expenses for the quarter ended December 31, 2024, totaled $56.8 million compared to $30.4 million in the prior year, primarily due to costs related to Phase 3 clinical trials for DURAVYU.
Net Loss for the Quarter and Year
Net loss for the quarter was $41.4 million or $0.64 per share, compared to a net loss of $14.1 million or $0.33 per share for the prior year. For the full year, net loss was $130.9 million or $2.32 per share compared to $70.8 million or $1.82 per share in the prior year.
Company Guidance
During the EyePoint Fourth Quarter and Full Year 2024 Financial Results call, the company shared several key metrics and guidance for future developments. EyePoint reported a strong financial standing with $371 million in cash and investments and no debt, bolstered by a $161 million equity offering in Q4. The company's net revenue for Q4 2024 was $11.6 million, slightly down from $14 million in the previous year, primarily due to lower deferred revenue recognition. Operating expenses rose to $56.8 million, driven by ongoing Phase 3 trials for DURAVYU. The company is progressing its DURAVYU program in wet AMD with enrollment exceeding expectations, anticipating completion in the second half of 2025 and top-line data by 2026. EyePoint plans to hold an end of Phase 2 meeting with the FDA regarding the pivotal trial design for DURAVYU in DME. The focus remains on executing Phase 3 trials efficiently, with no immediate plans to access equity markets for additional funding.EyePoint Pharmaceuticals Corporate Events
Executive/Board Changes
EyePoint Pharmaceuticals Strengthens Board with New Appointment
Positive
Jan 8, 2025
EyePoint Pharmaceuticals announced the appointment of Dr. Reginald J. Sanders, a renowned retina specialist and leader in ophthalmology, to its Board of Directors. This strategic addition is expected to enhance the company’s scientific and medical leadership as it pursues its mission to develop innovative therapeutics for retinal diseases. Dr. Sanders’ experience is seen as vital to advancing EyePoint’s ongoing clinical trials and pipeline, including DURAVYU, which holds potential for transforming treatment paradigms in serious retinal conditions.
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.