EyePoint (EYPT) stock crashed on Oct. 19 as another pivotal trial disappointment prompted the biotech firm to announce sweeping job cuts. EYPT’s experimental eye treatment, DURAVYU, missed its primary endpoint in the Phase 3 study for wet age-related macular degeneration.
Management responded with plans to eliminate roughly 53% of its workforce and redirect resources toward diabetic macular edema.
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EyePoint shares are now trading at only a fraction of their price at the start of 2026.
www.barchart.comHere’s Why EyePoint Stock Crashed Today
EyePoint expects most layoffs to be executed in Q4, with the reductions taking place in the first half of 2027. The restructuring should deliver about $30 million in annualized savings but will trigger around $9 million in charges.
Management will also conclude its pivotal wet AMD studies before completing their second year, concentrating instead on DURAVYU’s diabetic macular edema program. Results from two pivotal trials are expected in the fourth quarter of 2027.
The development is largely bearish as it narrows EyePoint’s near-term prospects and leaves its recovery dependent on another clinical readout more than a year away.
Layoffs can help preserve resources, but they can’t replace the clinical evidence needed to support regulatory approval and eventually commercial sales.
Jefferies Cuts EYPT Shares Price Target
The trial disappointment and the subsequent layoffs announcement led Jefferies’ senior analyst Faisal Khurshid to downgrade the biotech stock to “Hold,” aggressively reducing his price target to $1.
Following the trial failure, the analyst said a path forward in wet AMD “seems unlikely.” The setback follows the earlier LUGANO disappointment, leaving investors looking to the diabetic macular edema studies for a potential recovery.
According to the Jefferies analyst, the two wet AMD failures raise questions about the drug’s efficacy, complicating confidence in that next opportunity.
What’s the Consensus Rating on EyePoint?
Heading into Monday, Wall Street had a consensus “Moderate Buy” rating on EYPT shares, with a bullish mean price target of about $26.
However, it’s reasonable to expect aggressive downward revisions ahead, much like Jefferies’, as other analysts also attempt to bake in the aforementioned trial setbacks into their estimates.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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