Opthea faces uncertainty after clinical trial failures, cash dwindles

Opthea Limited announced a preliminary net loss of $162.8m for the year ended June 30, 2025, down from a $220.2m loss in 2024. Revenues from ordinary activities rose 57.9% to $5.6m. However, the group’s cash and cash equivalents significantly declined to $48.4m from $172.5m in 2024, alongside a net current asset deficit of $(201.1m).

The financial results reflect substantial investment in Research & Development (R&D), with total R&D expenditure at $126.8m, driven primarily by Phase 3 clinical trials that failed to meet primary endpoints. Following these negative results for sozinibercept in wet AMD, Opthea has discontinued its development, streamlined operations, and reduced its workforce. The company also settled with DFA Investors for a $20m cash payment and a 9.99% equity stake, terminating the Development Funding Agreement.

Opthea's future operations face material uncertainty due to the need to reformulate OPT-302 for other diseases and secure additional funding. The company expects its current cash to fund operations only until the fourth calendar quarter of 2026 and plans to raise capital through public or private equity financings or collaborations.