Eyegate Pharmaceuticals Inc (NASDAQ: EYEG) has been the center of attention for several savvy investors as of late, and for good reason. The company has released several positive bits of news over the past few weeks, leading to the stock nearly doubling in value since April 10th. So, what’s the big deal? Why do investors seem to love EYEG right now?
What Does EYEG Do?
Before we get into why investors are so excited about Eyegate Pharmaceuticals right now, let’s talk a bit about what they do. The company is a clinical-stage biotechnology company that is in the process of developing products in the ocular sector. Using two proprietary technologies, EYEG is focused on creating treatments for diseases and disorders of the eye.
The first of the company’s two proprietary technologies is known as CMHA-S. The platform is based on a cross-linked thiolated carboxymethyl hyaluronic acid. The product has unique physical and chemical properties that include hydration and healing when applied to the surface of the eye. EYEG has demonstrated that the CMHA-S product has the ability to protect and adhere to the ocular surface for a longer period of time than other options. The treatment is also resistant to degradation, making it well suited to the unique environment involved when treating the eye.
The company’s second proprietary technology is a key aspect of a product known as EGP-437, which is currently in clinical trials. The product is the result of a reformulated topically active corticosteroid, Dexamethasone Phosphate, that is delivered into tissue within the eye through the company’s proprietary technology known as the EyeGate II Delivery System. Currently, EGP-437 is being assessed as a potential treatment for ocular uveitis as well as pain and inflammation following cataract surgery.
Recent News Has Been Positive
As mentioned above, Eyegate Pharmaceuticals has been making a run for the top in the market as of late, and the reason has to do with excitement surrounding recent news from the company. Throughout the month of April, we’ve seen a slew of press releases out of the company, starting with one on April 6th, surrounding the completion of enrollment in a Phase 3 clinical study surrounding EGP-437. The pivotal study has enrolled 250 patients in the United States and will assess the safety and efficacy of iontophoretically-delivered EGP-437 in patients with unilateral or bilateral non-infectious anterior segment uveitis. During the study, the primary efficacy endpoint will be the proportion of subjects with an anterior chamber cell count of zero at day 14.
The news was followed up just three days later on April 9th with news that the company received feedback from the FDA surrounding its other product in clinical trials, it’s ocular bandage. In the release, EYEG informed investors that not only has it received feedback from the regulatory body surrounding the product, but the feedback was positive and provided a clear pathway toward resubmission.
Two days later, on April 11th, the company made yet another positive announcement. That news informed investors that EYEG had been issued a new patent by the United States Patent and Trademark Office. The new patent relates to the company’s iontophoretic contact lens and adds yet another layer to the company’s IP protection.
Then, two days later on April 13th, there was a slight dip in the value of Eyegate after the company announced a public offering. Through the offering to the public, the company would raise $11.25 million in new funding. The problem is that these offerings are dilutive. Nonetheless, after this short bump in the road, the company went back on an upward run.
Most recently, EYEG announced on April 17th that it had completed the offering, raising the $11.25 million it was expected to raise.
What We’re Seeing From EYEG Today
Following up on the massive gains that we’ve seen on the stock as of late, Eyegate Pharmaceuticals is having an incredibly strong day in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:22), EYEG is trading at $0.62 per share after a gain of $0.082 per share (15.24%) thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Considering The Risks
Any time an investment is made, risks are accepted. Therefore, these risks should always be considered. In the case of Eyegate, we’re talking about a clinical-stage biotechnology company. While the company is in late phases, and, if things go well, they could move to commercialization relatively soon in the grand scheme of things, EYEG has no approved products on the market at the moment that are generating revenue. This creates an environment where the company is heavily reliant on its investors and lenders for funding. Considering the cost of bringing medication to market, we could see another dilutive offering down the line.
Also, while the data surrounding products being developed at EYEG seems to be positive, anything can happen. If for any reason the clinical trials currently in progress were to fail, or the FDA or other regulatory bodies didn’t like the data produced, we could see dramatic declines in the value of the stock.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on Eyegate. In particular, we’re interested in following the continued development of their impressive pipeline. We’ll also be following the company’s financial position, as clinical-stage biotech companies aren’t generally the most financially sound. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!