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EYEG: Solid results – moving towards regulatory filings later this year


By Beth Senko, CFA



EyeGate Pharmaceuticals (NASDAQ:EYEG) is sticking to its business plan, despite any disruption from the pandemic. Meetings with regulators are on the schedule, and preparatory work for its approval filing continues.

First quarter results were in-line with estimates. Research and development rose to $0.9 million in the quarter, compared to $0.7 million in the year-earlier period. The modest increase reflects more activity related to OBG studies. General and administrative expenses dropped $0.1 to $1.0 million from $1.1 in the year earlier period, primarily from lower personnel and professional costs.

The Company used approximately $2.4 million in CFFO in the quarter and ended the quarter with cash and equivalents of $5.9 million.

Our $12 valuation reflects royalty-based sales of $65 million by 2030 for both the PRK and PE indications. Our model uses a 20% royalty rate to EYEG, with its partner assuming all manufacturing, selling, marketing and distribution expenses. Our 10-year DCF uses 2% terminal sales growth, 20% EBIT margin and 25% tax rate, discounted back at 10%. We do not include any potential upfront or milestone payments in this calculation and assume all research and development expense is borne by EyeGate.

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