Hey mate, they’re two quite different companies despite them both having an AMD treatment in the works. OPT is probably the better play if you’re only interested in an AMD treatment as it has a clearer path to market, however I like EYE more as a company as the downside for the AMD treatment is protected by the solid revenue growth (and hopefully soon profit) currently generated by its existing products.
In regard to the AMD treatment though, OPT is focused on the advanced wet stage of the disease. This is a market with existing treatments which have ALL proved to be incredibly lucrative. OPT is aiming to reduce the frequency and increase the efficacy of anti-VEGF injections which would be a major differentiator as currently many people require monthly injections, which is incredibly expensive and very inconvenient for people who typically have significant mobility issues (not to mention it’s uncomfortable- no one likes being stabbed in the eye monthly!). It also means they don’t need to really compete with anti-VEGF drugs and will be more of a complement, which is a major plus for me. The market is already developed and so OPT should be able to quickly commercialise and get to market post approval. At the current market cap it is definitely a solid investment (IMO) considering companies that developed treatments for only this stage (ie no other products) often fetch valuations in the 10s of billions of dollars. OPT also has solid clinical data with the recent P2 study, and is at the start of the P3 trials. It also presents significant synergy’s for companies with existing treatments so will likely be a major takeover target post approval. Keep in mind the patents for existing anti-VEGF injections are either recently expired or are approaching expiration, so the big AMD players will be looking for things like OPT 302 to continue generating ridiculous profits from AMD treatments. I do think it is quite incredible that a company with a treatment for wet AMD which is so close to market could have such a low market cap. I recently bought a small parcel for that reason, I may add more but I’m always quite cautious with buying shares in pre revenue companies (OPT being an example of why I am cautious). I also got a very good tip about this one from someone I trust quite a bit when it comes to investing…
EYE’s 2RT is quite different. First it’s a laser, but more importantly it is for earlier to intermediate stage disease. The thinking there is it is much better to prevent the disease earlier before it gets to late stage, where irreversible damage has already occurred and often occurs at a much faster rate. Waiting for late stage to treat is fairly risky as one missed injection will likely cause rapid and irreversible vision loss. 2RT has already had a promising phase 2 trial, which indicated quite a phenomenal 77% reduction in progression in most early to intermediate patients (those without RPD) however still needs a final pivotal clinical trial for the FDA approval. This P3 trial will have around 1000 patients. This will require a major partnership deal to fund, which we are still waiting on. Everything else is all ready to go though, FDA has said what they want in the trial and all the investigators from major ophthalmology institutions have agreed to participate. The issue (or benefit depending on how you look at it) with 2RT is that it is completely novel and will likely be the first ever treatment for early to intermediate AMD. This is a significantly bigger market than wet AMD, and presents an opportunity to be a first mover in a massive market. Many companies have tried to develop treatments for this but haven’t been successful. However of course that also means it’s not a tried and tested market. It’s hard to assess how much demand there will be for earlier intervention, I think there will be a lot but we will have to see. Does seem like there is an emerging trend in ophthalmology to treat these diseases ealier, as seen with glaucoma treatments. The key for them will be gaining a partnership which will be sufficient to not only fund clinical trials, but literally creating a new market (so they basically need a major big pharma player to partner up with them). It’s a much less clear and more difficult path to market for 2RT, but of course if they pull it off the sky’s the limit.
So when comparing them I’d say that OPT is better if you’re solely interested in AMD as it actually has a clear path to the market. 2RT still needs a partnership and it is entering an untapped market which presents quite a bit of uncertainty. However comparing the companies side by side I do prefer EYE mainly because it already has the existing product generating significant growth and likely soon profit. EYE is only being valued based on that revenue generating product (and IMO the valuation is still far too low compared to peers) and the price is certainly not pricing in the AMD opportunity so 2RT is basically a free option (ie if nothing happens nothing is lost, however if it’s a success it’ll obviously be a major share price driver). Currently though I’m not invested in EYE for 2RT, I like them for their other product iTrack Advance. If I was looking for solely AMD I’d get OPT though, hence why I bought some shares
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