The FDA delivered a significant setback to Outlook Therapeutics on August 30, rejecting the company's biologics license application (BLA) for ONS-5010 (bevacizumab-vikg), an investigational treatment for wet age-related macular degeneration. The rejection sent Outlook's shares tumbling 80% at market opening, erasing an estimated $989 million in potential 2029 revenue according to GlobalData consensus forecasts.
Manufacturing Concerns Drive Regulatory Decision
In its complete response letter (CRL), the FDA flagged several chemistry, manufacturing, and controls (CMC) issues alongside concerning observations during pre-approval manufacturing inspections. The agency also determined there was a "lack of substantial evidence" in Outlook's BLA, despite ONS-5010 meeting its primary safety and efficacy endpoints in the Phase III NORSE TWO trial.
"We are disappointed, and we were certainly not expecting to receive a CRL back from the FDA," said CEO Russell Trenary during a conference call on August 30. However, he expressed optimism about addressing the manufacturing issues, stating the company believes the CMC concerns to be manageable and "we don't see any showstoppers."
Clinical Trial Performance vs. Regulatory Standards
ONS-5010 demonstrated positive results in the NORSE clinical development program, including the pivotal NORSE TWO study that compared the drug against Genentech's Lucentis (ranibizumab). The trial met both primary and secondary endpoints, showing that ONS-5010 led to significantly better vision gains. The BLA also included data from the clinical experience trial NORSE ONE and the open-label safety study NORSE THREE.
Despite these clinical successes, the FDA's request for additional confirmatory clinical data suggests the agency requires more robust evidence before approval. Outlook has requested a Type A meeting with the FDA to understand the specific deficiencies in its application and determine the path forward for potential resubmission.
Market Context and Competitive Landscape
Outlook was positioning ONS-5010, also known as Lytenava, to become the first FDA-approved intravenous bevacizumab specifically for ophthalmic diseases. The wet AMD market is currently dominated by established anti-VEGF therapies including Regeneron's Eylea (aflibercept), Roche's Lucentis (ranibizumab), and biosimilar versions of Roche's Avastin (bevacizumab).
Eylea maintains a strong market position with approximately $1.75 billion in sales during the first half of 2023, representing a 1.4% increase year-over-year. Genentech's newer entrant Vabysmo (faricimab) generated nearly $1.1 billion in revenue during the same period, while Lucentis experienced a nearly 50% sales decline following patent expiration.
Currently, bevacizumab is used off-label for wet AMD treatment, with clinicians relying on unapproved repackaged intravenous formulations from compounding pharmacies. Outlook argues these products carry known risks of contamination and inconsistent potency and availability, positioning ONS-5010 as a safer, standardized alternative.
Next Steps and European Prospects
The company is pursuing multiple regulatory pathways following the FDA rejection. Beyond the planned Type A meeting with the FDA, Outlook confirmed it is in discussions with the European Medicines Agency (EMA) regarding potential approval in Europe.
ONS-5010's active ingredient, bevacizumab, is a monoclonal antibody that blocks VEGF signaling and disrupts its interaction with cell surface receptors, preventing new blood vessel growth. This anti-VEGF mechanism has proven successful across multiple cancer indications including colorectal, non-small cell lung, and breast cancers, and has demonstrated effectiveness in wet AMD through other approved therapies targeting the same pathway.