Aldeyra Therapeutics Inc (NASDAQ: ALDX) was one of the big stock losers in Tuesday’s trading session. The company closed the day at a loss of 32.44%. This followed news that investors were questioning the company’s dry eye treatment. This came after the company’s treatment failed to meet its key goals in a late-stage trial. The treatment called Reproxalap worked in reducing eye dryness, but did not reduce foreign objects and damage in the test subject eyes.
According to the company’s Chief Medical Officer, David Clark the data on foreign objects and related eye issues was encouraging. However, the market reacted strongly in spite of this assurance. The company will be launching phase 3 of its dry eye treatment in H1 of 2020. Data indicates that about 34 million Americans have a dry eye disease, and that existing treatments may need more than 6 weeks for them to have an impact, and it’s not a satisfactory one.
On top of that, the company has announced that it is working on asking the FDA to approve its eye inflammation treatment. In March, the company announced that it had positive data from a different phase 3 trial test on its product meant to fight allergic conjunctivitis, an allergy triggering eye inflammation.
According to the CEO, Todd Brady, this year has been great for the company, stating that they were happy with the clinical studies. If successful, the company would be angling for a piece of a multibillion-dollar market. As per research by Allied Market Research, the allergies treatment market is expected to hit $40 billion by the year 2025.
Looking at the charts, the company closed Tuesday’s session with a gap down. Volumes in the day stood at 2.68 million.
About Aldeyra Therapeutics Inc
Aldeyra Therapeutics Inc is a biotech firm that focuses on the development and sale of immune-mediated ocular diseases among others. It has its headquarters in Lexington, Massachusetts.