Optea (ASX:OPT)a Melbourne-based clinical-stage biopharmaceutical company has announced a boost to its cash reserves, receiving a $15.9 million research and development (R&D) tax incentive from the Australian Taxation Office. The funding supports Opthea’s development of sozinibercept, an innovative therapy targeting wet age-related macular degeneration (wet AMD), a leading cause of severe visual impairment worldwide.
Wet AMD is a progressive eye condition characterized by abnormal growth of blood vessels under the retina. These vessels can leak fluid and blood, damaging central vision, which can significantly impact daily activities such as reading and recognizing faces. While current treatments often involve anti-VEGF-A drugs – drugs that inhibit vascular endothelial growth factor (VEGF) to limit the growth of blood vessels – these only partially control the disease, leaving room for improved patient outcomes .
Sozinibercept, Opthea’s lead drug candidate, is a soluble protein trap that targets VEGF-C and VEGF-D, two additional growth factors involved in vascular growth, inflammation and leakage. By inhibiting VEGF-C and VEGF-D alongside standard VEGF-A inhibitors, sozinibercept aims to provide more complete control over the factors driving wet AMD. This unique dual-action approach is currently being evaluated in two Phase 3 clinical trials, COAST and ShORe, with topline data expected in early to mid-2025.
“Receipt of this A$15.9 million R&D tax incentive credit further strengthens our cash position as Opthea progresses through Phase 3 trials for sozinibercept,” said Frederic Guerard, CEO of Opthea. “We are optimistic that this approach will improve overall efficacy and vision improvements, potentially addressing the limitations of standard anti-VEGF therapies.”
Despite this positive news, Opthea shares are trading 6.43% lower at 65.5 cents.