Failed Phase III trials force Opthea to rethink eye drug program

Australian biotech Opthea (Nasdaq: OPT) is cutting around two-thirds of its workforce, as the company moves to curb spending following the collapse of its lead program for age-related macular degeneration (AMD).

The Melbourne-based firm said on Thursday that the layoffs, effective May 1, would impact approximately 65% of employees, leaving a small team in place to wrap up trial activities and manage administration. Opthea expects the move to cut monthly employee costs by $1 million.

The restructuring follows the termination of two Phase III trials — COAST and ShORe — which had tested sozinibercept, a VEGF-C/D inhibitor, in combination with established anti-VEGF-A therapies Eylea (aflibercept) and Lucentis (ranibizumab) for neovascular and wet AMD, respectively.