Opus Genetics (IRD) AI Stock Analysis

• Market Cap: $38.81M
• Dividend Yield: N/A
• Average Volume (3M): 269.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -42.30%
• EPS Growth: -330.51%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 73
• Industry: Biotechnology
• EPS (TTM): -1.99
• Shares Outstanding: 47,183,823
• 10 Day Avg. Volume: 253,319
• 30 Day Avg. Volume: 269,448
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.75
• Price to Cash Flow (P/CF): -1.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.33
• Price Target Upside: 890.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Opus Genetics is struggling with financial challenges, including declining revenues and continued losses, which significantly impact its overall score. The stock's technical indicators suggest a bearish trend, and the valuation remains unattractive due to the negative P/E ratio. The termination of a key purchase agreement further underscores capital access issues, posing additional risks to the company's financial stability.

Positive Factors

Clinical Trials

Initial positive visual acuity gains have been observed in patients with advanced LCA5 disease, indicating potential for clinical advancement.

Partnerships

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

Regulatory Approvals

A Special Protocol Assessment agreement with the FDA for the Phase 3 LYNX-2 trial aligns agency expectations for treating vision issues under low light conditions.

Negative Factors

Investor Sentiment

Some investors believe that a new therapy will need to show significant vision improvement (and not just prevention of worsening) to garner adoption.

Opus Genetics Business Overview & Revenue Model

Company Description

Opus Genetics (IRD) is a biotechnology company focused on developing gene therapies for inherited retinal diseases. The company operates within the biopharmaceutical sector, concentrating on creating innovative treatments aimed at restoring vision for patients affected by genetic eye disorders. Its core products are gene therapy solutions that target specific genetic mutations responsible for retinal diseases.

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
10.99M	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: Negative
• Last Price: 0.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRD, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 1.01, and below the 200-day MA of 1.24, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 30.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRD.

Opus Genetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGNX	56 Neutral	$317.24M	―	-79.49%	―	-7.66%	23.04%
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%
CRSP	46 Neutral	$3.34B	―	-19.20%	―	-89.95%	-123.71%
NTLA	41 Neutral	$776.38M	―	-54.00%	―	59.55%	3.09%
IRD	39 Underperform	$38.81M	―	-203.19%	―	-42.30%	-330.51%
EDIT	39 Underperform	$110.50M	―	-98.10%	―	-58.64%	-40.05%
QURE	35 Underperform	$495.88M	―	-238.46%	―	71.17%	23.89%

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.

Opus Genetics Enhances Executive Severance Packages

Opus Genetics, Inc. has amended and restated its executive employment agreements with its CEO, Dr. George Magrath, and CFO, Nirav Jhaveri, enhancing severance packages in connection with a ‘Change in Control’. These changes, effective January 17, 2025, include increased cash severance payments and extended COBRA coverage, reflecting Opus Genetics’ commitment to securing leadership stability during transitional corporate events.