Clearside Stock Is up Over 80% In Three Trading Days. How Much Higher Can It Go?
Can you feel the ground moving beneath your feet? Shares of eye disease-focused Clearside Biomedical (CLSD) skyrocketed 84% over the past 3 trading sessions, after investors showed their approval for the biopharma’s latest quarterly results.
Specifically, the company generated revenue of $25.7 million, $8.26 million above the consensus estimate of $16.52 million. Powering the beat were the milestone payments the company received in the quarter from licensing partners Bausch + Lomb and Arctic Vision for Clearside’s eye therapy, XIPERE.
Recall, XIPERE - an injectable suspension of triamcinolone acetonide utilizing the company’s SCS (suprachoroidal space) technology – was given the go ahead by the FDA for suprachoroidal use last October. Aimed at patients with macular edema related to uveitis, Bausch + Lomb launched the product earlier this year.
The licensing revenue was behind the company notching quarterly profits for the first time as net income hit $18.7 million. As such, EPS came in at $0.31, beating the analysts’ forecast by $0.16.
Covering the stock for investment firm Stifel, analyst Annabel Samimy is impressed with Clearside’s “meaningful progress.
“The approvals and positive data across programs has shown that the SCS platform has utility across multiple compound types and delivers drug with efficiency and safety (allowing greater dose escalation),” Samimy said. “Aside from future Xipere milestones (up to $57.3m) and royalties (high teens-20%), we see the larger benefit in physician awareness and training on the SCS platform as a primer for higher value programs.”
The company saw out 2021 with 30.4 million of cash in the coffers, which gives it runway until 2Q23. This will give Clearside the means needed to continue development of CLS-AX - the lead candidate indicated for the treatment of wet (neovascular) age-related macular degeneration (wAMD) - as well as move forward with preclinical studies of other small molecule programs.
Despite the positive take, with the company’s other programs in “early stages and minimal visibility,” Samimy stays cautious, keeping a Hold rating on CLSD shares. That said, the analyst might as well have said Buy, given her $7 price target. The figure suggests shares will rise by 181% in the year ahead. (To watch Samimy’s track record, click here)
The Street’s take is more bullish apparently. The stock boasts a Moderate Buy consensus rating, based on 4 Buys and 2 Holds. Should the $11.50 average price target be met, investors are looking at one-year returns of a huge 362%. (See Clearside stock analysis on TipRanks)
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