Opthea Faces Setbacks Following COAST Trial Results

Deal News | Mar 24, 2025 | Abingworth LLP

Opthea Limited has announced that its COAST Phase 3 trial did not meet the primary endpoint for treating wet AMD with sozinibercept. This trial involved a combination of sozinibercept with aflibercept, but it failed to show significant improvements over aflibercept alone. Following the negative outcome, Opthea is reviewing its obligations under the Development Funding Agreement with its investors. The company faces potential financial implications that could threaten its solvency if certain conditions under the agreement are triggered. These developments have resulted in ongoing discussions with investors to find the best strategic pathway forward. In light of these uncertainties, trading in Opthea's securities remains suspended on both the ASX and Nasdaq. With inherent risks associated with biotech investments, Opthea advises caution and professional advice for prospective investors.

Sectors

Biotechnology
Pharmaceuticals
Private Equity

Geography

Australia – Opthea is an Australian-listed company, and its head office is located in Melbourne, Australia.
United States – Opthea is also traded on Nasdaq and has a presence in Princeton, NJ, emphasizing its operations in the U.S. market.

Industry

Biotechnology – The article revolves around Opthea, a biotech firm focused on developing pharmaceutical treatments for retinal diseases.
Pharmaceuticals – Opthea is involved in pharmaceutical development, specifically with its trials for treating wet age-related macular degeneration.
Private Equity – The involvement of Abingworth LLP, a private equity firm, suggests this sector's investment interest in biotech innovations.

Financials

US$113.8 million – Unaudited cash and cash equivalents balance as of February 28, 2025.
US$0 to US$680.0 million – Potential repayment amount Opthea may owe to DFA Investors, depending on various termination conditions.

Participants

Name	Role	Type	Description
Opthea Limited	Target	Company	A clinical-stage biopharmaceutical company developing treatments for retinal diseases.
Abingworth LLP	Investor	Company	Private equity firm involved in the investment of Opthea.
Development Funding Agreement Investors	Investors	Other	Investors holding rights under Opthea's Development Funding Agreement, possessing security over Opthea's assets.