By Colin Kellaher

Opthea is scrapping development of lead product candidate sozinibercept in wet age-related macular degeneration, or wet AMD, following the failure of another late-stage study.

Opthea on Monday said its second Phase 3 study of sozinibercept in combination with aflibercept in wet AMD, an eye condition that causes blurred vision or reduced central vision, missed its primary endpoint of mean change in best corrected visual acuity.

The clinical-stage biopharmaceutical company said it opted to accelerate the study readout following the similar Phase 3 study failure it reported last week.

Opthea said it agreed with the investors in its development funding agreement to end development of sozinibercept in wet AMD, and that the move wouldn't constitute a termination event under the funding deal.

However, the company warned once again that it might be required to pay amounts to the investors--which would have a material adverse effect on its solvency--and that there is material uncertainty about its ability to continue as a going concern

Trading in shares of Opthea has been halted in the U.S. and Australia since March 17.

Opthea said it is in talks with its development funding investors to explore possible options to deliver the best outcome for the company and its shareholders, and that trading in its securities will be suspended in Australia until it is able to provide more clarity on the issues and the impact on its financial position.

The company's American depositary shares closed at $3.41 on March 14.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

March 31, 2025 09:37 ET (13:37 GMT)

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