EyePoint Inc (EYPT.A): wAMD Pathway Shutters with Second Ph3 Miss. Lowering TP to $4 (-$13). EYPT Refocuses Into a DME Story

Citi notes that EyePoint's LUCIA Phase 3 study missed its primary endpoint of noninferiority to aflibercept on BCVA. At the blended 52/56-week endpoint, DURAVYU-treated patients gained about 2.5 letters versus about 6.1 letters for aflibercept, a -3.7-letter treatment difference with the lower bound of the confidence interval below the 4.5-letter noninferiority margin. The study showed a statistically significant ~38% reduction in treatment burden, and the safety profile remained generally acceptable and consistent with LUGANO. Following the second Phase 3 failure, Citi removes wAMD from its model and lowers the DME probability of success from 55% to 45%, reducing the target price to $4 from $17 while maintaining a Buy/High Risk rating. Citi believes the DME program remains viable because DURAVYU's JAK1 inhibition may provide anti-inflammatory activity via IL-6, but risks have increased.