Months after reporting the failure (and termination) of its phase 3 wet age-related macular degeneration (AMD) program for sozinibercept, Opthea Limited announced a corporate update for the biopharmaceutical company’s future.
A preview of what’s to come: Significant workforce cuts (more than originally expected), including to its executive leaders.
Let’s take this from the top.
We’ll begin with a look at the company’s lead asset: sozinibercept.
What it is: An anti-vascular endothelial growth factor (VEGF) “trap” agent, sozinibercept is specifically designed to be used in combination with standard-of-care anti-VEGF therapies.
See here for how it works—including how it differs from current wet AMD therapeutics.
And the data on it?
As we previously reported, Opthea terminated its phase 3 wet AMD program on sozinibercept in March 2025 after both clinical trials failed to meet their primary endpoints.
Those studies:
- Combination OPT-302 with Aflibercept Study Trial (COAST; NCT04757636)
- Study of OPT-302 in combination with Ranibizumab (ShORe; NCT04757610)
So what did the company decide after this termination?
Next steps included Opthea determining its options, rights, and obligations pertaining to a development funding agreement (DFA) the company has in place with its investors (who financed the phase 3 wet AMD program).
Among the possibilities: Repaying its investors “four multiples of the amounts paid to the company” in compensation for the funding they provided for sozinibercept’s development.
- See here for those proposed amounts.
And speaking of terminations …
In announcing those potential repayment scenarios back in April 2025, Opthea also shared that it would be reducing its workforce by an estimated 65%, effective May 1, in order to preserve the company’s cash for its investors.
- Check out those details, including the estimated cost savings.
Now explain the company’s latest news.
In an Aug. 19 corporate update, Opthea announced it had successfully settled its DFA with the company’s investors by reaching a binding agreement.
Specifically, investors will collectively:
- Receive a one-time payment of $20 million
- Be issued “equity equivalent to 9.99% of the total issued share capital of the company on a fully diluted basis” (meaning the total number of shares that would be outstanding and available to trade) with 136,661,003 fully paid ordinary shares
See the entire agreement as well as the full terms of the equity subscription deed.
So what does that leave Opthea with?
The aftermath of this agreement and deed will reportedly result in the company “remaining solvent” with an “estimated unaudited cash and cash equivalents” of around $20 million.
Alrighty, now to those new cuts you referenced.
The company announced the following reductions:
- 80% reduction in its workforce
- 50% reduction of its Board of Directors
The reasoning: These cuts are said to be part of Opthea’s “overall strategy to streamline its operations” as it has also renegotiated all contracts related to clinical trials.
… and the executive news?
Three major departures are happening in September.
- On Sept. 1: CEO Fred Guerard, PharmD
- On Sept. 15: Chief Financial Officer (CFO) Tom Reilly and Director Sujal Shah
The CEO?! So who’s in charge now?
That would be Jeremy Levin, PhD, chairman of Opthea’s Board of Directors.
Notably: Levin will continue serving as chairman in addition to assuming the duties of CEO as the company conducts a full strategic review of its operations over the next 6 months.
Speaking of the future … where does the company go from here?
Opthea’s Board of Directors will reportedly “continue to focus on maximizing shareholder value” as well as evaluate:
- Targeted internal development
- Strategic partnerships or potential business development (BD) / licensing*
- Returning capital to shareholders*
*Where appropriate
Stay tuned over the next several months for what’s next.