Opthea (OPT) H2 2025 earnings summary

Executive summary

• Phase 3 clinical trials (COAST and ShoRe) for sozinibercept in wet AMD failed to meet primary and secondary endpoints, leading to discontinuation of the program.

• Immediate cash preservation measures included an 80% workforce reduction and halving of the Board.

• Settlement with Development Funding Agreement (DFA) investors avoided potential liquidation, with a $20M payment and 9.99% equity issued to investors, releasing all liens and obligations.

• Strategic review underway to explore reformulation of anti-VEGF compounds for other indications.

Financial highlights

• Net loss for FY2025 was US$162.8M, improved from US$220.2M in FY2024.

• R&D expenditure decreased to US$126.8M (FY2024: US$176.3M); R&D tax incentive received was US$10.4M.

• Cash and cash equivalents at June 30, 2025: US$48.4M (FY2024: US$172.5M); post-settlement cash as of August 2025: US$19.3M.

• Net current liability position of US$201.1M at year-end (FY2024: net current asset US$124.1M).

• Share price at June 30, 2025: A$0.60 (FY2024: A$0.35).

Outlook and guidance

• Cash reserves expected to fund operations into Q4 2026, subject to outcomes of strategic review and reformulation efforts.

• Future focus on reformulating anti-VEGF compounds for diseases mediated by VEGF-C, D, and R3.

• Additional capital may be required depending on success of reformulation and future clinical trials.