Ocular Therapeutix Inc. (NASDAQ: OCUL) said that second Phase 3 study of its compound called Dextenza for treating allergic conjunctivitis turned out to be a disappointment as the primary endpoint was missed. However, a closer look at other aspects of the study reveals that all is not lost for Ocular Therapeutix with Dextenza.
There is opportunity for Ocular Therapeutix Inc. (NASDAQ: OCUL) to continue developing Dextenza for the treatment of glaucoma. It is no wonder that several analysts have maintained positive outlook on the stock. Those analysts seem to understand that there remain other routes for Ocular Therapeutix to bring Dextenza to market.
It appears that although failure to hit endpoints always generates disappointment, the case of Dextenza is turning out to be different. The other reason that gives hope that Ocular Therapeutix could find way to bring Dextenza to market is the fact that the drug demonstrated favorable safety profile during the study.
Next step of action for Ocular Therapeutix Inc. (NASDAQ: OCUL)
According to Ocular Therapeutix Inc. (NASDAQ: OCUL)’s CEO, Amar Sawhney, the next course of action they are planning after the underwhelming second Phase 3 trial is meeting with FDA. The meeting with the regulator will be to discuss the results and chart the appropriate path for the development of Dextenza as a marketable product.
Citing the potential in Dextenza despite the failed second late-stage trial, analysts at Cowen have reiterated their OUTPERFORM rating on the stock of Ocular Therapeutix. It appears to some analysts that the disappointing endpoint relating to the treatment of allergic conjunctivitis is meaningfulness to the future of Dextenza.
Ocular Therapeutix Inc. (NASDAQ: OCUL) was also surprised by what transpired in the second Phase 3 study of Dextenza. The CEO Sawhney said that the less-than-impressive outcome of the study was inconsistent with the result of the first Phase 3 trial.
Dextenza was test against Placebo in the second Phase 3 study and the difference was sharply below expectations with regards to allergic conjunctivitis treatment.