Chardan Capital Markets has initiated coverage on Clearside Biomedical (NASDAQ: NASDAQ:CLSD), assigning a Buy rating to the stock with a price target of $6.00. The firm's coverage begins as Clearside Biomedical continues to develop its proprietary drug, CLS-AX, which is designed to treat patients with wet Age-related Macular Degeneration (wet AMD (NASDAQ:AMD)).
CLS-AX leverages Clearside Biomedical's unique microinjector to deliver axitinib, a potent inhibitor targeting the VEGF receptors, directly into the suprachoroidal space (SCS). The method is expected to notably reduce the frequency of treatments needed for patients suffering from wet AMD, a condition where VEGF stimulates the growth of new, often leaky, blood vessels in the eye, impairing vision and potentially causing retinal damage.
Axitinib, the active ingredient in CLS-AX, is a small molecule tyrosine kinase inhibitor (TKI) that has demonstrated effectiveness in blocking VEGF receptors 1, 2, and 3. By inhibiting these receptors, axitinib can slow the development of new blood vessels and thus the progression of wet AMD. CLS-AX is being explored as a long-acting maintenance therapy, with the potential to last approximately six months.
Clearside Biomedical is currently conducting a Phase 2 study of CLS-AX in patients with wet AMD. The company anticipates that the data from this study will become available in late 3Q24. This ongoing study is a critical step in the development of CLS-AX and its potential future availability to patients.
In other recent news, Clearside Biomedical reported significant developments in its operations. The company's Q1 2024 financial report revealed a net loss of $11.8 million, with operating expenses at $8 million, lower than the estimated $10 million.
However, Clearside ended the quarter with $35 million in cash, providing financial stability into Q3 2025. The company's leading product candidate, CLS-AX, is currently in the Phase 2b ODYSSEY trial, expected to read out data in Q3 2024, aiming to demonstrate its efficacy in treating wet Age-related Macular Degeneration (AMD).
Notably, H.C. Wainwright and JMP Securities have maintained a Buy and "MARKET OUTPERFORM" rating, respectively, with a price target of $5.00 for Clearside Biomedical. In other developments, the company announced the appointment of Glenn C. Yiu, M.D., Ph.D., to its Scientific Advisory Board (SAB) and the election of three directors at its annual meeting.
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