What Happened

EyePoint Pharmaceuticals announced a 53% workforce reduction (~113 employees) after its investigational tyrosine kinase inhibitor duravyu failed to meet the primary endpoint in the Phase 3 Lucia trial for wet age-related macular degeneration (AMD). The company is ending both pivotal wet AMD trials early and will concentrate resources on duravyu's late-stage program for diabetic macular edema (DME). The layoffs are expected to cost $9 million in employee separation benefits.

Who Is Affected

The Watertown, Massachusetts–based biotech employed 214 people as of February 27, meaning approximately 113 employees will be let go. Most of the workforce reduction will take place during the fourth quarter of 2026 and be completed in the first half of 2027. The company's stock plummeted more than 80% to 55 cents per share following the news.

Market Impact

• Stock collapse: EyePoint shares dropped over 80% at market open to $0.55 per share.
• Cash position: Despite the setback, the company holds $180.5 million in cash, cash equivalents, and marketable securities (down from $222.5 million in Q2).
• Separation costs: $9 million in estimated charges related to the layoffs.
• Competitor impact: Regeneron's Eylea remains the standard of care for wet AMD after duravyu's failure to show non-inferiority.

What to Watch

EyePoint expects a pivotal Phase 3 readout for duravyu in DME during the fourth quarter of 2026, which will determine the program's viability. The company also plans to complete additional analyses of the Lucia trial and pooled Phase 3 datasets to evaluate next steps for duravyu in wet AMD. Completion of workforce reductions by H1 2027 will signal the company's stabilized operating structure.

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