Key Highlights

  • Research and development expenses rose 71% to USD 81.7 million in the quarter.
  • Cash, cash equivalents and investments were USD 118.2 million at September 30.
  • LUGANO and LUCIA did not meet the non-inferiority primary endpoint.
  • The company announced a workforce reduction of approximately 53%.

EyePoint (NASDAQ:EYPT) reported third-quarter 2026 loss per share of USD 1.07, against an estimate of USD 0.93. Revenue was USD 756 thousand, against an estimate of USD 231.15 thousand. The company is developing DURAVYU, an investigational sustained-release tyrosine kinase inhibitor delivered with its Durasert E technology. The U.S. Food and Drug Administration has conditionally accepted DURAVYU as the proprietary name for EYP-1901, and the product has not been approved.

Phase 3 Topline Results and Prioritization

Topline data from the LUGANO and LUCIA Phase 3 trials were announced on August 17, 2026 and October 19, 2026, respectively. Both trials did not meet the primary endpoint of non-inferiority in change in best corrected visual acuity versus on-label aflibercept control. The filing notes that both showed visual acuity improvements for a majority of patients. They also reached key secondary endpoints, including a continued favorable safety profile with redosing, reduction in treatment burden and the percentage of patients supplement-free through Week 56.

The company announced a Strategic Prioritization. Under it, the pivotal Phase 3 wet age-related macular degeneration trials are being concluded early, without full completion of the second year of each trial. Additional patients are allowed to complete year two to support the safety database for a potential new drug application in diabetic macular edema. The company continues to evaluate the full Phase 3 dataset for potential next steps in wet AMD. As part of the Prioritization, it announced a workforce reduction of approximately 53%.

Operating Expenses and Interest Income

Research and development expenses increased USD 33.9 million, or 71%, to USD 81.7 million for the three months ended September 30, 2026, against USD 47.8 million. The filing attributes the increase to the ongoing DURAVYU Phase 3 trials in wet AMD and diabetic macular edema and scale-up of the Northbridge commercial Manufacturing facility. The filing projects a decrease in Research and Development expenses in 2027 in connection with the Prioritization.

General and administrative expenses increased USD 0.9 million, or 6%, to USD 15.4 million for the quarter. For the nine months, they increased USD 4.7 million, or 12%, to USD 44.9 million, mainly from higher personnel costs including non-cash stock compensation. It projects a decrease in general and administrative expenses in 2027 as well.

Interest income decreased USD 1.0 million, or 45%, to USD 1.3 million for the quarter, and decreased USD 2.3 million, or 26%, to USD 6.5 million for the nine months, mainly from lower cash available for investment.

License and collaboration revenue decreased USD 0.1 million, or 67%, to less tha USD 0.1 million for the quarter. For the nine months, it decreased USD 15.8 million, or 96%, to USD 0.7 million. Royalty income from Ocumension Therapeutics was USD 0.2 million for the quarter and USD 0.3 million for the nine months.

Operating cash outflows for the nine months totaled USD 229.7 million, mainly from a net loss of USD 274.9 million reduced by USD 33.8 million of non-cash expenses, including USD 33.9 million of stock-based compensation. In the prior-year nine months, operating cash outflows were USD 175.1 million, with a net loss of USD 164.4 million. Net cash provided by financing activities was USD 43.1 million, against USD 6.7 million. Cash and cash equivalents were USD 83.2 million at September 30, 2026.

The company had cash, cash equivalents and investments in marketable securities of USD 118.2 million at September 30, 2026. The filing states that, based on current operating plans and excluding future external financing, the company does not have sufficient cash and cash equivalents to fund operating expenses and Capital requirements beyond one year from the issuance of the financial statements.

Reported Reference Points for the Quarter

The reported items are research and development expenses of USD 81.7 million, the LUGANO and LUCIA topline outcomes, the Strategic Prioritization, the approximately 53% workforce reduction and cash and investments of USD 118.2 million. The company is listed on the Nasdaq Stock Market.