Stock for Clearside Biomedical, Inc. (NASDAQ: CLSD) saw a sharp climb on Thursday, during the aftermarket hours. In less than two hours following the close of trade, CLSD shot up by over 60%, stabilizing later at 35.6%. This comes after a steady bearish movement observed over the past month, owing to market skepticism in relation to various factors. For instance, there was uncertainty in regards to CLSD’s growth prospects and sustainability, especially since later last year in September.
CLSD Fourth Quarter Financial Results
The reason for this sudden surge in CLSD stock correlates primarily to a recent announcement by the firm. The fourth-quarter financial results demonstrate the sheer extent to which the company was potentially undervalued. This can be determined by the magnitude by which the company had exceeded expectations on the financial front. Instead of delivering the expected revenue of $17.61 million, last quarter, the firm reports a revenue figure of $25.7 million. Similarly, GAAP EPS amounted to $0.31, which is almost double the expected $0.16.
The biopharmaceutical eye specialist firm, Clearside Biomedical clearly exceeded financial expectations by a hefty margin. The boost in revenue was a result of key milestone payments by its licensing partners last quarter. As a result, the company’s liquidity standing improved substantially, enhancing its ability to pay off obligations and sustain operations. Cash equivalents amounted to over $30 million, which was approximately 75% higher than the reported figure last year.
XIPERE Licensing
These payments relate to Clearside Biomedical’s top-notch eye therapy service labeled XIPERE. Licensing partners launched the treatment last year, after receiving approval from the relevant US agencies.
The injectable suspension brought hope to patients suffering macular edema and raised the optimism of CLSD investors.
CLSD Historical Shifts
The stock is not new to ups and downs throughout its trading history. During the Covid-19 outbreak in 2020, the stock saw a devaluation of close to 65% due to broader market factors. It then embarked on a steady bullish trajectory in November of 2020. As a result, CLSD ballooned to 4.5 times its initial value in a 10-month timespan. The current uptick observed may well be a similar swing the company experiences into the long-term.
Conclusion
CLSD stock is currently undergoing a steep increase in share price. This comes after the realization of heavy stock undervaluation, following the company’s fourth-quarter announcements for 2021. The biopharmaceutical eye specialist firm holds significant promise, given innovative treatments launched across the market.
