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Tuesday, June 11, 2019

Ocular Therapeutix: Launch Looms, Insiders Buying

Shares have lost nearly three-quarters of their value since IPO and are in the red by 15% so far in 2019.
Management gave a solid presentation at Jefferies, clearly communicating value proposition of its lead product and hydrogel-based platform.
Preparations have been made to maximize odds of a successful launch for Dextenza to treat postoperative ocular pain.
Additional product candidates and collaborations provide investors optionality. PDUFA date in November for inflammation is also an important event.
The stock is a Speculative Buy. Risks include setback in launch and near-term dilution.
Shares of Ocular Therapeutix (OCUL) have lost nearly three-quarters of their value since IPO was priced at $13 in 2014. Over the past year, the stock has lost half its value and is in the red by roughly 15% so far in 2019.
This busted IPO popped up on my radar after a recent cluster of insider buying(Chairman just bought 45,780 shares, Chief Medical Officer with multiple purchases, etc.). After listening to management’s presentation at Jefferies, I was able to overcome my initial skepticism to realize there is meaningful innovation taking place here. [MORE]

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