Biotech smallcap Opthea eyes 5% jump as key drug of interest validated in paper

Dual ASX and NASDAQ listed Opthea Ltd (ASX:OPT) has jumped 4.5% to 77cps today after having its diabetic eye drug of interest further validated as a potential treatment in a scientific paper.

Treating Diabetic Macular Edema (DME) – a condition associated with diabetes that is sight-threatening where blood vessels leak fluid – is among Opthea’s key goals, using the drug sozinibercept.

According to a presentation on the company’s website (which focuses less on DME and more on another condition called “Wet AMD“), the drug represents a “multibillion-dollar” opportunity.

The drug is a “first-in-class” protein-based compound that combines different naturally occurring proteins in specific combinations intended to target key areas of the body. In this case, the eye, where affected by DME.

The reason shares were climbing on Tuesday was the drug appears to have been partially validated in a paper published in the peer-reviewed journal Translational Vision Science & Technology this week.

That paper was based on Phase 1b testing of the drug in nine patients with DME; Opthea said on Tuesday the paper ultimately “underpin[s] sozinibercept’s potential.”

The conclusions of that study were summarised thus: “In prior-treated patients with center-involved DME, switching to sozinibercept in combination with aflibercept was well tolerated with improved visual and anatomic outcomes.”

The latter drug aflibercept is an existing U.S.-approved drug used to treat renal conditions.

The drug effectively prevents blood vessel growth in diabetic patients; those blood vessels ultimately are the problem in patients whose eyes take in too much fluid.

Whether a study can prove definitively that the drug is superior will probably come first from the company’s activities probing patients with Wet AMD over DME (both similar sight-threatening conditions).

Whilst our immediate focus is to prepare for the anticipated sozinibercept Phase 3 topline data readout in wet AMD of COAST in early CY Q2 2025 and ShORe in mid-2025, we also plan to advance our clinical development program of sozinibercept in DME,” Opthea CEO Frederic Guerard said.

OPT last sold at 77cps through Tuesday trade.

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