On Monday, Clearside Biomedical (NASDAQ:CLSD) saw its price target adjusted by H.C. Wainwright. The firm lowered the target to $5 from the previous $6 while maintaining a Buy rating on the stock. This revision follows Clearside Biomedical's recent financial report for the first quarter of 2024.
The company disclosed that its license and other revenue amounted to $230,000 for the quarter. However, it also reported a net loss of $11.8 million, or $0.17 per share, which was more significant than the anticipated loss of $10.3 million.
The management highlighted the ongoing Phase 2b ODYSSEY trial of CLS-AX, an axitinib injectable suspension for the treatment of wet age-related macular degeneration (AMD (NASDAQ:AMD)), is expected to announce topline results by the end of the third quarter of 2024.
The ODYSSEY trial, a 36-week study, is focused on evaluating the efficacy of re-dosing patients with CLS-AX at six months or earlier. Insights from this study are anticipated to contribute to advancing the program into Phase 3 development.
H.C. Wainwright's analysis estimates Clearside Biomedical's current market value at $400 million. With an assumed 74.9 million shares outstanding at the end of the first quarter of 2025, the firm calculates a value of approximately $5 per share. Consequently, the investment firm has reiterated its Buy rating while adjusting the 12-month price target to $5.
InvestingPro Insights
As Clearside Biomedical (NASDAQ:CLSD) navigates through its clinical trials and market valuation, current InvestingPro data provides a snapshot of the company's financial health and market performance. The market cap stands at $93.41 million, reflecting the company's overall market value. Despite a significant revenue growth of 758.94% over the last twelve months as of Q1 2024, analysts are concerned about the company's profitability, as indicated by a negative P/E ratio of -2.67 and an operating income margin of -301.09%. Interestingly, the stock has experienced a considerable price uptick of 28.87% over the last six months, suggesting investor optimism in certain aspects of the company's prospects.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, which could signal expectations of improved financial performance. However, they also note that the company is quickly burning through cash and does not expect it to be profitable this year. For investors looking for more comprehensive analysis, there are additional InvestingPro Tips available for Clearside Biomedical, which can be accessed at https://www.investing.com/pro/CLSD. To delve deeper into these insights and discover more about the company's trajectory, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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