Summary
- Oyster Point Pharma has filed proposed terms for its U.S. IPO.
- The firm is developing treatments for various eye conditions.
- OYST has a potential mid-2020 catalyst when it expects topline readout from its lead candidate's Phase 3 trial.
- The IPO may be worth considering for long-term hold life science investors with at least a 12-18 month hold time frame.
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Quick Take
Oyster Point Pharma (OYST) intends to raise $85 million in an IPO of its common stock, according to an S-1/A registration statement.
The company is advancing drug treatments for certain eye conditions.
OYST has a potential upside catalyst in mid-2020 and the IPO appears reasonably valued, so for life science investors with a hold time frame of at least 12 to 18 months, the IPO may be worth considering.
Company & Technology
Princeton, New Jersey-based Oyster Point was founded in 2006 to develop new therapeutics for the treatment of eye diseases.
Management is headed by CEO and Director Jeffrey Nau, who has been with the firm since 2017 and was previously Vice President of Clinical and Medical Affairs at Ophthotech.
Below is a brief showcase video of the company’s technology:
Source: OIS: Ophthalmology Innovation & Investment
Oyster’s lead drug candidate OC-01 or ‘varenicline’ is a highly-selective nicotinic acetylcholine receptor [nAChR] agonist, currently in development as a nasal spray for the treatment of signs and symptoms of dry eye disease [DED].
Management says that varenicline has a novel mechanism of action where it is capable of re-establishing tear film homeostasis through the activation of the trigeminal parasympathetic pathway and stimulating the glands and cells responsible for natural tear film production.
“Human tear film is a complex mixture of more than 1,500 different proteins, including antibodies, and numerous classes of lipids and mucins that are responsible for forming the primary refracting surface of the cornea, as well as protecting and moisturizing the cornea.”
Most currently approved therapies rely primarily on anti-inflammatory mechanisms of action, a slow onset of action, and come mostly in the form of eye drops that can cause ocular burning, reduced visual acuity as well as a bad taste after application.
