Buy Rating for Clearside Biomedical Amid Promising CLS-AX Trial Progress and Sufficient Cash Runway

H.C. Wainwright analyst Yi Chen reiterated a Buy rating on Clearside Biomedical (CLSD – Research Report) today and set a price target of $5.00.

Yi Chen has given his Buy rating due to a combination of factors related to Clearside Biomedical’s current financial situation and promising clinical trial developments. The company’s first quarter 2024 financial results reported a net loss that was slightly higher than anticipated, yet this does not deter the optimistic view held by the analyst. The ongoing Phase 2b ODYSSEY trial for their leading product candidate, CLS-AX, is progressing well, with expectations to report top-line results by the end of the third quarter of 2024. The successful completion of this trial could advance the product into Phase 3 development, enhancing the company’s growth prospects and valuation, which is currently estimated at around $400 million.

The ODYSSEY trial is particularly significant as it compares the efficacy of CLS-AX against a current standard treatment for wet age-related macular degeneration (AMD) and could potentially reduce treatment frequency while maintaining visual acuity. Positive outcomes from earlier trials further bolster the likelihood of success. Financially, Clearside Biomedical appears to have adequate cash reserves to maintain operations into the third quarter of 2025, affording them some runway to achieve their clinical milestones without immediate need for fundraising. These strategic and financial reasons substantiate Yi Chen’s recommendation to buy CLSD stock.

In another report released on May 10, JMP Securities also reiterated a Buy rating on the stock with a $5.00 price target.

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Clearside Biomedical (CLSD) Company Description:

Clearside Biomedical, Inc. is a clinical stage biopharmaceutical company, which engages in the development of drug therapies to treat blinding diseases of the eye. Its pipeline includes Suprachoroidal CLS-TA, Suprachoroidal, Suprachoroidal CLS-TA, and gene therapy. The company was founded by Samir Kumar Patel, Vladimir Zarnitsyn, Mark Prausnitz, Daniel H. White, and Henry F. Edelhauser in May 2011 and is headquartered in Alpharetta, GA.