Michael Sacerdote

Ophthotech: Visionary Brilliance

Ophthotech (NASDAQ:OPHT), whose IPO is scheduled for September 26th, offers a completely new approach to a common problem. The lead compound, Fovista, promises to dramatically change the treatment of age-related macular degeneration and it has performed outstandingly in phase 1 and phase 2 trials. In this article, I discuss the basic science (with a few minor glosses), the clinical trials, and -- of course -- valuations. At $490 million, Ophthotech is a bargain.

The macula is a pigmented spot on the retina responsible for high-acuity central vision. Consequently, disorders of the macula are severely disabling.

(click to enlarge)

Figure 1. Fundoscopic view of the normal retina. Open-source image adapted from Wikipedia.

Macular degeneration is a process of uncertain...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details