OKYO Pharma Limited's decision to close enrollment early in its Phase 2 trial for urcosimod, a potential breakthrough treatment for neuropathic corneal pain, has prompted analysts to significantly raise their price targets as the company accelerates its development timeline.
Goldman Small Cap Research increased its price target for OKYO Pharma (NASDAQ:OKYO) to $8 from $5, representing a 60% boost, following the company's unexpected early closure of its Phase 2 trial after treating just 17 patients instead of the originally planned 48.
Early Trial Closure Signals Potential Efficacy
The Phase 2 trial, which launched in October 2024, was originally scheduled to complete enrollment by year-end. However, OKYO elected to close enrollment early in April to begin analyzing masked data and plan for the next phase of development. This unusual move has been interpreted by analysts as a potentially bullish signal.
"This is a compelling set of observations that suggests a potential drug effect and illustrates the challenging condition in which the patients suffer and the need for the Fast Track designation by the FDA," Goldman analysts wrote in their research update.
The early closure has accelerated the timeline for top-line results, which are now expected in the first half of the third quarter of 2025, months ahead of the original schedule. Goldman noted that "the acceleration of the release of potentially positive top-line Phase 2 data should also shorten the time that we believe these shares would take to reach our upgraded, $8.00 price target."
Addressing Significant Unmet Medical Need
Urcosimod is being developed as a potential first-in-class treatment for neuropathic corneal pain (NCP), a chronic and debilitating eye condition that affects tens of thousands worldwide. The condition is marked by severe discomfort that resists conventional treatments, and there are currently no FDA-approved therapies available.
Goldman estimates the market opportunity for NCP treatments could exceed $6.4 billion, highlighting both the unmet medical need and the commercial potential for a first-approved therapy. The FDA has granted urcosimod Fast Track designation, recognizing the urgent need for effective treatments in this area.
Strong Patient Interest and Clinical Momentum
Interest in the trial has been "considerable," according to OKYO, with numerous NCP patients inquiring about future participation or requesting compassionate use access. The company is reportedly working with Tufts Medical Center to enable such access, pending FDA approval.
OKYO's lead drug candidate has already successfully completed a 240-patient Phase 2 trial in dry eye disease (DED) patients, demonstrating the company's clinical execution capabilities across multiple ophthalmic indications.
Market Performance and Future Outlook
OKYO's shares have performed strongly, nearly doubling since the start of 2025 and setting new 52-week highs. The stock was trading at around $2.28, with Goldman's $8 price target implying significant upside potential from current levels.
Goldman commented that "since our January 2025 report, OKYO's shares have essentially doubled, along with a doubling of average daily volume." The analyst firm attributed the share price rise to fundamental developments, including the Fast Track designation and the unexpected early completion of the Phase 2 trial.
If the upcoming results are favorable, OKYO is expected to request an End-of-Phase 2 meeting with the FDA, where future trial design, endpoints, and pathways to approval will be discussed. Goldman believes that positive trial results combined with FDA engagement could fast-track urcosimod's path to market and attract attention from potential partners or acquirers in the ophthalmology space.
"As a first-mover that has the potential to publish favorable results for a debilitating condition that has a serious unmet need, and represents a multi-billion-dollar market, we believe these shares could reach new heights," Goldman concluded in their analysis.
