Reassessing Aerie Pharmaceuticals


  • Today, we revisit ocular concern Aerie Pharmaceuticals.
  • The company has struggled as a newly minted ‘Tier 3’, with the stock down some 60% in 2019 to date.
  • A fully updated investment analysis is presented in the paragraphs below.

Art is a revolt against repression.” – Marty Rubin

Today, we revisit an ocular concern that was a big winner a few years ago as it advanced its product portfolio. However, commercialization has been a different story, and the stock has had a sharp drop in 2019. We revisit this small-cap name in the paragraphs below.

Company Overview

Aerie Pharmaceuticals (NASDAQ:AERI) is a North Carolina-based ophthalmic pharmaceutical company that IPO’d in 2013. The company is focused on changing the lives of patients with glaucoma, retinal diseases, and other diseases of the eye. The company has two FDA-approved drugs on the market: Rhopressa which lowers elevated eye pressure in patients with open-angle glaucoma and ocular hypertension, and Rocklatan for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. Beyond the two approved drugs, the company’s pipeline is young with the next two most advanced product candidates, AR-1105 and AR-13503, being in Phase 1/2 of development. Aerie Pharmaceuticals trades for just around $18 a share and currently has a market capitalization of roughly $1 billion.


Source: Company Presentation


Rhopressa is a once-daily eye drop for the lowering of elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension and was approved by the FDA in December 2017. The drug works by increasing the outflow of fluid inside the eye through the trabecular meshwork, which is the primary fluid drain in the eye. The drug was launched in the U.S. in 2018 and is seeking approval in European and Japanese markets. Enrollment for the Rhopressa’s Phase 2 clinical trial in Japan is now complete, ahead of schedule, and topline results should be available in Q4. If successful, a Phase 3 trial will follow. The market for the drug is roughly 50% commercial insurers and 50% Medicare Part D. As of the latest quarter, the company has gained access to the

Disclosure: I am/we are long AERI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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