HCW starts Oyster Point Pharma at buy; PT $20

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H.C. Wainwright launched coverage of Oyster Point Pharma (NASDAQ:OYST) with a “buy” rating and $20 price target. The stock closed at $4.43 on July 15.

Oyster Point Pharma is a commercial stage biopharmaceutical company focused on development of ophthalmic therapies, with recent FDA approval in October 2021 for its lead asset, Tyrvaya, nasal spray indicated for the treatment of the signs and symptoms of dry eye disease (DED).

Analyst Matthew Caufield writes Express Scripts began coverage of Tyrvaya in February 2022, which more than doubled the reported unique prescribers from approximately 1,900 during the 2021 launch, to greater than 4,500 unique prescribers through the first quarter of 2022.

“We highlight these trends represent the earliest stages of Tyrvaya launch, along with anticipated coverage determinations for all major US commercial payers during mid-2022, which we believe can serve as an important catalyst for near-term commercial growth,” he added.

In addition to Tyrvaya, he said the company is developing OC-01 nasal spray for the treatment of neurotrophic keratopathy Stage 1 patients, with the ongoing Phase 2 OLYMPIA trial continuing enrollment and expected to have results in the fourth quarter of 2022.