Shares of LENZ Therapeutics (LENZ) fell ~26% on Friday, a move TD Cowen attributed to investor worries over an adverse event reported on a federal database about the company’s newly launched eye therapy Vizz (aceclidine), Bloomberg News reported.
According to analyst Stacy Ku, who has a Buy rating on LENZ, the FDA’s adverse-event database, known as FAERS, indicated a retinal tear linked to Vizz, which the agency approved in July for the treatment of presbyopia (blurry near vision) in adults.
“The perceived safety overhang from retinal detachment (RD) risk impacted the Vuity launch (beyond lack of efficacy).” Ku said, referring to a rival presbyopia therapy from AbbVie (ABBV), and adding that’s why leading physicians “do retinal exams ahead of prescribing VIZZ.”
However, the analyst noted the incidence so far is consistent with LENZ’s (LENZ) guidance. Citing the company management, she said that the patient in question, who had a history of retinal disease and hadn’t received a retinal exam, is “recovering well” following the tear in the right eye.