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Ocuphire (OCUP) to Report Q1 Earnings: What's in the Cards?

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We expect investors to focus on the pipeline updates when Occuphire Pharma  reports first-quarter 2023 results, which is expected in May.

In the year-to-date period, shares of the company have surged 51.6% against the industry's 3.8% decline.

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Ocuphire has a mixed record of earnings surprises in recent quarters. Its earnings surpassed estimates in three of the trailing four quarters and missed the mark in one, delivering an average earnings surprise of 23.85%. The company delivered an earnings surprise of 42.34% in the last reported quarter.

Ocuphire Pharma, Inc. Price and EPS Surprise

 

Ocuphire Pharma, Inc. Price and EPS Surprise

Ocuphire Pharma, Inc. price-eps-surprise | Ocuphire Pharma, Inc. Quote

 

Let's see how things might have shaped up for the quarter to be reported.

Factors to Consider

Ocuphire is yet to generate revenues, owing to the absence of a marketed product in its portfolio. Hence, pipeline-related updates are likely to be in focus on the company’s first-quarter earnings call.

OCUP is developing three product candidates in late-stage studies for various ophthalmic indications. The company is developing Nyxol for multiple indications. It is doing so in collaboration with its partner, FamyGen Life Sciences (acquired by Viatris (VTRS - Free Report) .

The deal was made in November 2022, under which, Ocuphire, along with Viatris, is conducting the development of Nyxol in the United States. VTRS is responsible for developing the drug in countries and jurisdictions outside of the United States.

The FDA accepted the new drug application (NDA) this February for reviewing Nyxol to reverse pharmacologically-induced mydriasis. It also set a PDUFA date of September 28, 2023.

The NDA for the abovementioned candidate was submitted in November 2022. The expected approval of Nyxol will be a significant catalyst for Ocuphire. 

The company has several anticipated pipeline updates and data presentations for 2023.

In January, the company announced that it enrolled the first patient in the phase III VEGA-2 study, evaluating Nyxol for presbyopia. Top-line data from the same is expected in late 2023.

It also reported positive data from the ZETA-1 phase II clinical study, evaluating oral APX3330 for preventing diabetic retinopathy (DR). Investors can expect an update on Ocuphire's plans for an end-of-phase II meeting with the FDA to advance the phase III study for APX3330 in DR.

Investors can also expect an update on the company’s business development plans for in-licensing or acquiring clinical-stage ophthalmological assets to expand and diversify its pipeline.

Earnings Whispers

Our proven model does not predict an earnings beat for Ocuphire this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Ocuphire has an Earnings ESP of 0.00% as the Most Accurate Estimate and Zacks Consensus Estimate for the company’s first-quarter loss are pegged at 24 cents per share.

Zacks Rank: Ocuphire sports a Zacks Rank #1 at present.

Stocks to Consider

Here are a few stocks worth considering from the overall healthcare space, as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Allogene Therapeutics (ALLO - Free Report) has an Earnings ESP of +3.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allogene’s shares have plunged 14.6% in the year-to-date period. ALLO’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 8.33%.

Seagen has an Earnings ESP of +5.09% and a Zacks Rank #2.

Seagen’s shares have surged 58.2% in the year-to-date period. The company’s earnings beat estimates in three of the last four quarters and missed the mark in one, delivering an average earnings surprise of 11.27%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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