EyePoint crashes as pivotal wet AMD trial fails, prompting 53% workforce cut

Investing.com -- EyePoint Inc (NASDAQ: EYPT) shares plummeted 82% in premarket trading on Monday following news that its lead drug candidate, DURAVYU, failed to meet the primary endpoint in a pivotal Phase 3 study for wet age-related macular degeneration. The clinical setback prompted the company to immediately initiate a sweeping corporate restructuring that includes cutting more than half of its workforce.

In the 475-patient LUCIA trial, DURAVYU failed to demonstrate statistical non-inferiority in mean change in best corrected visual acuity compared to the standard-of-care aflibercept control arm. The disappointment mirrors results from the sister LUGANO study, effectively halting EyePoint's ambitions for the drug in wet AMD despite secondary endpoints showing a 38% reduction in overall treatment burden.

Faced with the trial failure, EyePoint announced a strategic pivot to focus entirely on developing DURAVYU for diabetic macular edema, where two pivotal Phase 3 trials are currently underway. To preserve capital for this remaining pipeline asset, the Board of Directors approved an early conclusion to the wet AMD program and a 53% workforce reduction.

The severe restructuring is projected to generate roughly $30 million in annualized cost savings while incurring approximately $9 million in one-time separation costs. Most of the job cuts will occur during the fourth quarter of 2026, with full implementation expected by the middle of 2027.

Management emphasized that the pharmacological properties of DURAVYU, particularly its multi-pathway inhibition targeting both vascular permeability and inflammation, align more effectively with the pathology of diabetic macular edema. EyePoint ended the third quarter of 2026 with approximately $118 million in cash, cash equivalents, and short-term investments to fund operations ahead of the key Phase 3 DME readouts slated for late 2027.

Original Article

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