EyePoint Inc. (EYPT) is slashing its workforce by 53% and halting wet age-related macular degeneration clinical trials early following disappointing Phase 3 results. The company will now pivot its resources entirely toward developing its DURAVYU treatment for diabetic macular edema, or DME.

Phase 3 Trial Misses Primary Target

The strategic shift comes after the company announced on Monday that LUCIA, its second pivotal Phase 3 trial, failed to meet its primary endpoint. While DURAVYU showed overall visual improvements among the 475 enrolled patients, it did not achieve statistical non-inferiority in best-corrected visual acuity compared to the on-label aflibercept control treatment.

Despite missing the main goal, the DURAVYU insert achieved key secondary targets. These included a strong safety profile with redosing, a meaningful reduction in treatment burden, and solid anatomic control at 56 weeks. These outcomes mirrored EyePoint's first Phase 3 trial, LUGANO, which also missed its primary visual acuity endpoint but demonstrated consistent secondary benefits and a 42% reduction in treatment burden.

Strategic Restructuring And Massive Layoffs

In response to the LUCIA data, the board of directors authorized a massive restructuring plan to preserve capital and maximize shareholder value. The company will conclude both pivotal Phase 3 wet AMD studies without finishing the second year and eliminate more than half of its employees.

Management expects the sweeping workforce reduction to generate roughly $30 million in annualized savings. The company anticipates incurring $9 million in one-time severance and separation charges. Layoffs will largely occur in the fourth quarter of 2026 and wrap up by mid-2027.

Pivoting Resources To DME Program

EyePoint will now channel its remaining resources—including an estimated $118 million in cash, cash equivalents, and short-term investments as of Sept. 30—into its DME clinical program. The Phase 2 VERONA trial for DME successfully met its primary endpoint, showing an extended time to first supplemental injection and sustained vision improvement.

Looking ahead, the company continues to advance its ongoing pivotal Phase 3 DME trials, known as COMO and CAPRI. EyePoint expects topline data for these critical studies in the fourth quarter of 2027.

EYPT Price Action: EyePoint shares were down 85.46% at $0.43 at the time of publication on Monday. The stock is trading at a new 52-week low, according to market data.