EyePoint’s Regulatory Overhang May Take Time To Clear After Wet AMD Trial Setback, RBC Says – Retail Calls EYPT Slump A ‘Huge Overreaction’

• RBC Capital downgraded EyePoint to ‘Sector Perform’ from ‘Outperform’ and slashed the price target to $5 from $37. 
• H.C. Wainwright downgraded EyePoint to ‘Neutral’ from ‘Buy’
• On Monday, EyePoint said its Phase 3 study for wet AMD therapy missed the primary endpoint.

Shares of EyePoint Inc. (EYPT) remained under pressure on Tuesday, with RBC Capital warning that the clinical and regulatory uncertainty stemming from a setback in a Phase 3 wet age-related macular degeneration study may take time to resolve.

EYPT stock was down another 2% in pre-market trading on Tuesday, after crashing 67% to a 16-month low the day before.

RBC Slashes Price Target By 86%

RBC Capital downgraded EyePoint to ‘Sector Perform’ from ‘Outperform’ and cut its price target by about 86% to $5, according to The Fly. It still represents a potential 3.7% upside.

The firm said Lugano’s (Phase 3 trial) failure to meet its primary endpoint was clearly negative for the stock. The study compared EyePoint’s Duravyu with Aflibercept, the standard treatment for wet AMD. The disease causes abnormal blood vessels to damage the retina, potentially leading to vision loss.

The study measured changes in patients’ best-corrected vision. Across the entire patient group, Duravyu failed to meet the required statistical standard to demonstrate it was not meaningfully worse than Aflibercept.

EyePoint primarily attributed the miss to vision loss in nine Duravyu patients, citing reasons it said were unrelated to wet AMD. Duravyu still achieved several secondary goals.

Attention Turns To Second Phase 3 Trial

RBC said that even if EyePoint’s second Phase 3 study delivers positive results, questions may remain about whether Duravyu adversely affects vision in certain patients and whether the U.S. Food and Drug Administration (FDA) would approve it based on a single successful trial.

H.C. Wainwright also downgraded EyePoint to ‘Neutral’ from ‘Buy,’ warning that if a similar imbalance appears in the second study, the results could prevent EyePoint from submitting a successful new drug application with the FDA.

The overall trial results are expected in the fourth quarter, with EyePoint targeting a regulatory filing in the first half of 2027. The stock has strong Wall Street backing, with 13 of the 14 analysts covering EyePoint rating it a ‘Buy,’ and one ‘Hold,’ according to Koyfin.

Retail Calls EYPT Selloff A ‘Huge Overreaction’

Despite the slump, retail sentiment surrounding EYPT on Stocktwits turned ‘extremely bullish’ from ‘bullish’ over the past 24 hours, amid a massive 22,150% increase in message volumes.

One user said that while it’s a “disaster” for long-term investors, there are plenty of opportunities for a rebound.

Another user called the selloff a “huge overreaction.”

The stock has slumped more than 73% so far this year.

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