Oppenheimer initiated coverage of Outlook Therapeutics Inc’s stock on Thursday at a price target of $12, while giving it an outperform rating. It’s a big show of confidence for the tiny biotech, whose shares shot up 26% on Thursday morning and are now trading at around $1. Outlook is investigating a formulation of bevacizumab it calls ONS-5010, meant to treat wet age-related macular degeneration. The main wet AMD drugs right now are Genentech’s Lucentis, Regeneron Pharmaceuticals Inc’s Eylea and Avastin, also by Genentech. Avastin, an oncology drug used off label to treat wet AMD, is popular among providers and payers because it’s cheaper than Lucentis and Eylea. However, risk of contamination has been a concern for the FDA, and Oppenheimer thinks ONS-5010 could one day end up taking over Avastin’s large share of the AMD space. Shares of the company have fallen 71% in the year to date, while the S&P 500 has gained 14.4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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