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Oyster Point Pharma: This Is An Attractive Dry Eye Disease Player For 2020

Mar. 09, 2020 2:18 PM ETViatris Inc. (VTRS)1 Comment
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Healthcare on the Move


  • OC-01 has demonstrated robust efficacy and safety in Phase 2 trials in DED.
  • There are multiple anticipated milestones for OC-01 in 2020.
  • Investors should consider risks such as business concentration risks, R&D failure risks, and financing risks.

Today, we will see why Oyster Point Pharma (OYST) is an attractive investment opportunity in 2020.

Company overview

Oyster Point Pharma is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative treatments targeting ocular surface diseases. The company’s lead asset is OC-01, an investigational drug candidate and highly selective nAChR (nicotinic acetylcholine receptors agonist). The therapy is being developed as a nasal spray to treat the signs and symptoms of DED (dry eye disease). The company also plans to study OC-01 in NK (neurotrophic keratitis) indication, a degenerative disease in which the nerves that supply the cornea do not function properly.

Why is DED a huge underserved market opportunity?

There are around 34 million adults from DED in the U.S., while the global prevalence of the disease is much higher, in excess of 340 million. While 16 million DED patients have been diagnosed across the world, less than 2 million are currently being treated. To date, around 7 million people have opted for available treatment options.

According to Oyster Point Pharma, “Dry eye disease is a multifactorial chronic disease of the ocular surface characterized by a loss of homeostasis of the tear film, resulting in pain, visual impairment, tear film hyperosmolarity and instability, inflammation and corneal wounding.”

The currently available treatment options are only addressing the inflammation aspect of this disease. Besides, the onset of action is slow and they suffer from tolerability and compliance issues. Despite these shortcomings, these drugs have become blockbuster therapies due to high disease prevalence and a high burden of the condition.

How OC-01 works in DED?

Unlike existing treatment options which are only focused on inflammation in DED, OC-01 aims to re-establish tear film homeostasis by activating the trigeminal parasympathetic pathway and stimulating the glands and cells responsible for natural tear film

This article was written by

Healthcare on the Move profile picture
I am an MBA in finance and an engineering graduate. I have also completed the CFA certification.I am involved in international trade and have been passionately tracking global equity markets for more than 7 years. I mainly focus on spotting long-term value investments in biotechnology, pharmaceutical, hospital, and medical device sectors. In the last two years, I have also been studying cannabis and hemp sectors.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (1)

Ventureshadow profile picture
Varenicline nasal spray vs. varenicline oral outcome for dry eye disease is the study comparison I'd need to see before investing in this stock. The pharmacokinetic study showing greater body exposure with the oral than the nasal spray implies the possibility that the oral will work. Varenicline oral's patent expired in 2020.
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