Opthea to lay off 65% of company following announcement of clinical trial discontinuation

This news follows the announcement from Opthea that it plans to discontinue its COAST and ShORe trials. Image credit: AdobeStock/dang/AI

Opthea announced its intention to lay off approximately 65% of the company in a corporate update filed with the US Securities and Exchange Commission (SEC).¹

This news follows the announcement from Opthea that it plans to discontinue its COAST and ShORe trials in wet age-related macular degeneration (AMD)² after the COAST trial failed to meet its primary end point.³

The company stated that “a limited number of employees will remain in place to ensure the compliant termination of clinical trial activities and oversee administration operations.”

Fred Guerard, PharmD, CEO of Opthea, commented on the news in the SEC release, saying, “Following the negative phase 3 trial results and in consultation with the company’s Development Funding Agreement (DFA) investors, the board has concluded that it is in the best interest of our investors to conserve cash. We are grateful for the numerous contributions of our colleagues leaving Opthea and wish them the best for their future endeavors.”

The company stated that the layoffs are expected to take effect on May 1, 2025, and that one-off costs associated with the reduction in force are expected to be approximately $4.5 million. Overall, the layoffs will result in a reduction in monthly employee costs of approximately $1 million, according to the company.

Opthea estimates unaudited cash and cash equivalents of $100 million as of March 2025. Opthea remains in active negotiations with its DFA investors, “pursuant to and as required under the DFA, to explore possible options to deliver the best outcome for the company and its shareholders.”

As previously reported, Opthea is currently relying on the "safe harbor" provisions in section 588GA of the Corporations Act 2001 (Cth), and trading in Opthea’s listed securities will be suspended by ASX under ASX Listing Rule 17.3 until the company is in a position to provide an announcement to the market providing more clarity on these issues and the impact on its financial position.

References:

1. Opthea Provides Corporate Update. Published April 10, 2025. Accessed April 10, 2025. https://www.sec.gov/Archives/edgar/data/1815620/000095017025052661/opt-ex99_1.htm

2. Harp M. Opthea discontinues COAST and ShORe trials in wet AMD. Ophthalmology Times. Published March 31, 2025. Accessed April 10, 2025. https://www.ophthalmologytimes.com/view/opthea-discontinues-coast-and-shore-trials-in-wet-amd

3. Harp M. Opthea phase 3 clinical trial, COAST, in patients with wet age-related macular degeneration fails to meet primary endpoint. Ophthalmology Times. Published March 24, 2025. Accessed April 10, 2025. https://www.ophthalmologytimes.com/view/opthea-phase-3-clinical-trial-coast-in-patients-with-wet-age-related-macular-degeneration-fails-to-meet-primary-endpoint