FARMINGTON HILLS, Mich. - Ocuphire Pharma, Inc. (NASDAQ:OCUP), a biopharmaceutical company specializing in ophthalmic treatments, announced the acquisition of Opus Genetics, Inc., a gene therapy firm targeting inherited retinal diseases (IRDs). The transaction, which concluded on Tuesday, has led to the formation of a new entity, set to be renamed Opus Genetics, Inc. and to trade under the ticker symbol IRD starting from October 24, 2024.
The merger aims to create a leader in gene therapy for IRDs, with Ocuphire bringing its late-stage drug development expertise to the combined company's pipeline. This includes the OPGx-LCA5 gene therapy candidate, which has shown promising six-month safety and visual improvement data in a Phase 1/2 trial for patients with early-onset retinal degeneration.
The combined company's pipeline also features Phentolamine Ophthalmic Solution 0.75%, currently in Phase 3 trials for presbyopia and dim light vision disturbances. Meanwhile, the company will seek a strategic partner for APX3330, designed to treat non-proliferative diabetic retinopathy, to focus resources on the acquired gene therapy programs.
The company has scheduled a conference call for today at 4:30 p.m. ET to discuss the acquisition. The anticipated cash runway for the combined company extends into 2026, with several clinical milestones expected in 2025, including additional data from the OPGx-LCA5 Phase 1/2 trial and top-line data from the LYNX-2 and VEGA-3 Phase 3 trials.
In terms of the acquisition's terms, Ocuphire issued 5.2 million shares of common stock and 14.1 thousand shares of convertible preferred stock to Opus Genetics stockholders. Post-acquisition, Ocuphire's pre-acquisition stockholders will own approximately 58% of the combined company, with Opus Genetics' stockholders owning around 42%.
The leadership team of the new entity will include Dr. George Magrath as CEO and Dr. Ben Yerxa as President. Board members from Opus Genetics, including scientific co-founder Dr. Jean Bennett, will join the combined company's Board of Directors.
This strategic move is expected to position the company favorably in the IRD treatment market. The information for this report is based on a press release statement.
In other recent news, Ocuphire Pharma reported positive results from two pivotal Phase 3 clinical trials for its eye treatment RYZUMVI. The trials demonstrated a significant number of subjects achieving normal pupil size within 90 minutes post-administration. The company has also initiated the VEGA-3 Phase 3 clinical trial for the treatment of presbyopia, a condition impairing the eye's ability to focus on close objects. Concurrently, the LYNX-2 Phase 3 trial is underway, investigating decreased visual acuity under low light conditions.
Ocuphire is also making strides in the development of APX3330, an oral treatment candidate for non-proliferative diabetic retinopathy, with the ZETA-2 Phase 2/3 trial set to commence in 2025. Analyst firms H.C. Wainwright and Canaccord Genuity have maintained buy ratings on Ocuphire's stock, albeit with reduced price targets. These developments highlight Ocuphire's ongoing efforts in advancing treatments for eye conditions.
InvestingPro Insights
As Ocuphire Pharma embarks on this transformative merger with Opus Genetics, investors should consider some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $34.58 million, reflecting its current valuation in the biotech sector.
InvestingPro data reveals that Ocuphire's revenue for the last twelve months as of Q2 2024 was $16.45 million, with a significant revenue decline of 63.67% over the same period. This decline aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year. This information is particularly relevant given the company's strategic shift towards gene therapy for inherited retinal diseases.
Another crucial InvestingPro Tip highlights that Ocuphire holds more cash than debt on its balance sheet, which could be advantageous as the company integrates Opus Genetics and advances its pipeline. This strong liquidity position may support the extended cash runway into 2026 mentioned in the article.
It's worth noting that InvestingPro offers 8 additional tips for Ocuphire Pharma, providing a more comprehensive analysis for investors interested in delving deeper into the company's financial health and prospects.
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