Ohr Pharma Downgraded To Hold At Brean Capital Citing Delays In Data Regarding OHR-102 Patients

Citing concern over whether OHR Pharmaceutical Inc OHRP would be able to fund the Phase 3 program in wet AMD for OHR-102 and delays in the disclosure of data, Brean Capital’s Jonathan Aschof downgraded the rating on the company from Buy to Hold.

Concerns Around OHR-102 Trials

Ohr Pharma has initiated the first of two Phase 3 trials in wet AMD, in-line with its target timeline. “The primary efficacy endpoint is the change in visual function at nine months, with a follow-up period of two years for safety,” analyst Aschof mentioned. The trial is to administer OHR-102 twice daily, along with monthly Lucentis injections in newly diagnosed patients.

Aschof noted that while the total cost of the program could be around the $100 million range, Ohr Pharma had about $17.6 million in cash as of June 30, 2016. With a large Phase 3 program underway, the company would either need to find a partner to help fund the program or raise substantial capital.

“We are downgrading Ohr to Hold from Buy due to our concerns over the company being able to fund its Phase 3 program and the increased frequency of background therapy in Phase 3 versus Phase 2,” the analyst wrote. Moreover, Ohr Pharma is yet to disclose data that “it said was coming months ago…and we would appreciate seeing that data to gain more comfort in the Phase 3 design.”

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