Opthea (ASX:OPT), a clinical-stage biopharmaceutical company based in Melbourne, has announced a boost to its cash reserves, receiving a $15.9m 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), one of the leading causes of severe vision 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 like reading and recognising faces. While current treatments often involve anti-VEGF-A drugs — medications that inhibit vascular endothelial growth factor (VEGF) to limit blood vessel growth — these only partially control the disease, leaving room for improvement in 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 vessel growth, inflammation and leakage. By inhibiting VEGF-C and VEGF-D alongside the standard VEGF-A inhibitors, sozinibercept aims to deliver more comprehensive 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 top-line data anticipated in early and mid-2025.
“The receipt of this A$15.9 million R&D tax incentive credit further strengthens our cash position as Opthea advances through Phase 3 trials for sozinibercept,” said Frederic Guerard, CEO of Opthea. “We are optimistic that this approach will improve overall efficacy and vision gains, potentially addressing the limitations of standard anti-VEGF therapies.”
Despite this positive news, shares in Opthea are trading 6.43% lower at 65.5 cents.