Ophthotech's Fovista Has Potential To Break Through The 'Therapeutic Ceiling' Of Anti-VEGF Therapies

BTIG’s Ling Wang believes Ophthotech Corp OPHT's Fovista has the potential to “break through the therapeutic ceiling of current anti-VEGF therapies.”

Wang initiated coverage of the company with a Buy rating and price target of $92.

Key Catalysts

“We view the ongoing Phase III program of Fovista in wet AMD as derisked and expect positive top-line data from the first two Phase III trials by YE16 to represent key near-term catalysts,” the analyst mentioned.

Wang expects a 65-percent probability of success for Fovista and peak U.S. sales of $1.6 billion, valuing the drug in wet AMD alone at $3.3 billion.

Additional upside could come from expanded indications of Fovista, as well as from Zimura.

Related Link: Traders Salivating For Action In Raptor Pharma: Here Are The Facts

Positive Results

For Fovista, Wang stated, “Positive efficacy in the primary and secondary endpoints, consistent results across various subgroup analyses from a large, randomized Phase IIb trial and the similar design between the Phase IIb and III trials suggest a de-risked Phase III.”

The drug has also shown signs of efficacy duration, with the interim data for the Phase II anti-fibrosis trial suggesting good durability beyond six months, although in only a small percentage of patients.

Large Unmet Need

Wang also pointed out that competing products from Ophthotech’s peers were at least three years behind, which gave Fovista a meaningful first-mover advantage.

The analyst also noted that Fovista addresses a large unmet need, given that the long term benefit of antiVEGF agents in wet AMD continue to be suboptimal.

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Posted In: btigFovistaLing WangZimuraAnalyst ColorBiotechLong IdeasHealth CareInitiationAnalyst RatingsTrading IdeasGeneral

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