Why EyeGate Pharmaceuticals, Inc. (EYEG) stock is gloomy day?

Shares of EyeGate Pharmaceuticals, Inc. (EYEG) stock were declining in the intraday session today on October 1, 2021. EYEG stock price saw a downtrend of 7.21% to drop at $2.09 a share at the time of this writing. The stock was green in the previous trade following Zack’s report that discussed the pipeline expansion of stock from one to three candidates. Let’s deep dive to explore more of it.

What’s Happening?

There is no major culprit behind the falling stock price of the EYEG stock today. No analyst degrades or decreased targeted per share price of the EyeGate have been reported. It seems that profit-takers have stepped in as this stock significantly gained in the last trading session. Zack’s report discussed various developments of EyeGate including expansion of pipeline from one to three candidates. Zack’s anticipated that EyeGate will captivate the attention of investors through a series of clinical milestones in the next one and half years.

In early September, EYEG completed the enrollment process of 21 patients for its phase 2 clinical trial for the treatment of dry eye disease with dihydroorotate dehydrogenase (“DHODH”) inhibitor, PP-001. Before this study, the stock performed Phase 1 safety and dose-escalation study in 24 healthy volunteers. The topline data from the phase 2 study is expected to release in the fourth quarter of 2021.

Offerings by EYEG stock:

In August, EYEG stock offered 4.7 million shares in a direct offering at a per-share price of $2.30 per share.  The stock also offered 2.3 million warrants at an exercise price of $2.24 per share. The company also raised $7.989 million in proceeds from the private placement offering which it completed in January 2021.

Second Quarter 2021 Financial Performance of EYEG stock:

In the second quarter of 2021, EYEG stock spent $1.4 million in research and development expenses. The previous year’s same quarter research and development expenses were $0.6 million. General and administrative expenses increased by $0.2 million to reach $1.3 million in Q2,2021 as compared to Q2,2020. The increase is attributable to professional fees and personnel-related expenses. By the end of the second quarter, EYEG stock had $3.7 million in cash and cash equivalents.

Conclusion:

So the story tells that there is no obvious reason related to EYEG stock behind the falling per share price of EyeGate. Its average price target is higher than $11.0 per share which represents that this stock has the potential to outperform in the future. Hence it is better to keep an eye on future developments of this stock before making any decision.