Clearside Biomedical may gain 319%. What do analysts say?

The Tech sector is one of the strongest on the market. There is so much to explore and create. The wonders of technology never cease. Lots of medical companies aspire to invent new medicines or technologies to cure the diseases, which have been incurable thus far. Clearside Biomedical is one of them.

This company develops treatments that could potentially be capable of preserving and restoring vision for people with serious diseases in their optic nerve. Clearside Biomedical also uses its patented SCS Microinjector, which targets the suprachoroidal space to achieve this purpose.

Microinjector can inject fluid into the SCS, which is between the choroid and sclera. Because of this, the cure can be effectively absorbed by adjacent tissues. Such a method reduces off-target delivery.

Roth Capital’s analyst Zegbeh Jallah thinks that, currently, investors undervalue the platform. The stock is trading at $1.91 per share, which is a very low price considering its potential.

What are Jallah’s arguments in favor of this stock?

To prove his point, Jallah referred to the clinical data from the studies evaluating XIPERE, its first drug using the microinjector. Clearside’s proprietary SCS microinjector’s ability to limit off-target delivery was clear by the lower rates of higher IOP in patients with SC-injected triamcinolone treatments, thanks to lower concentrations of the drug flowing into the anterior chamber.

Such success raises the chances that the therapy will get the FDA’s approval in mid-2021 after the company resubmits the NDA by the end of 2020. XIPERE is already licensed to Bausch and Arctic Vision. Furthermore, Clearside Biomedical is finalizing a licensing agreement with Aura in July 2019, as well as with REGENXBIO in August 2019. The analyst also thinks that these agreements highlight the attractiveness of Clearside’s SCS microinjector.

Jallah rated Clearside Biomedical a Buy. He then set an $8 price target per share. Seemingly, this target suggests shares could skyrocket by 319% in the next year. The stock also got buy ratings from other analysts as well. Its average price target is $6.33, which indicates a 231% upside potential.