EyeGate Pharmaceuticals’ share price movement
On July 24, EyeGate Pharmaceuticals (EYEG) announced that it has secured FDA approval for two investigational device exemption applications related to pilot studies for the company’s OBG (ocular bandage gel) product scheduled to commence in the third quarter.
In one pivotal study, the company will compare the OBG (or CHMA-S) product with the combination of bandage contact lens and artificial tears, which is the current standard of care for patients who have undergone photorefractive keratectom and require accelerated re-epithelialization of the corneal wounds. In the other study, EyeGate Pharmaceuticals will evaluate the potential of the OBG product to reduce corneal staining in patients suffering from punctate epitheliopathies. The company aims to focus on patients suffering from moderate dry eyes who aren’t finding relief with OTC treatments and may or may not be using therapies like Allergan’s (AGN) Restasis or Shire’s (SHPG) Xiidra.
After the news, EyeGate Pharmaceuticals’ share price rose ~5.8% and closed at $0.63 on July 24.
The above chart shows the market opportunity for the OBG product. OBG is expected to be transformational in the corneal wound and dry eye segments. EyeGate Pharmaceuticals also plans to expand the OBG label in indications like cataract surgery, acute corneal wounds, chronic corneal wounds, ulcers, and as post-Lasik therapy. EyeGate Pharmaceuticals is exploring the combination of CHMA-S with corticosteroids like dexamethasone or loteprednol etabonate and the combination of CHMA-S with an antibiotic, fluoroquinolone, in certain corneal wounds and dry eye indications.
OBG’s market opportunity
Despite the impending entry of the generic version of Restasis, Teva Pharmaceuticals’ (TEVA) Teva-Cyclosporine, there’s significant unmet demand in the corneal wound and dry eye market in the United States. Although 76 million patients are affected by these conditions in the United States, there are only 3.5 million prescriptions for existing treatment options. There’s significant scope for OBG growth in these segments.