Shares of EyePoint Pharmaceuticals (EYPT) tumbled 7.02% in pre-market trading on Wednesday following the release of disappointing third-quarter financial results. The biopharmaceutical company, focused on developing treatments for serious eye diseases, reported wider losses and a significant revenue decline compared to the same period last year.

For the third quarter ended September 30, 2025, EyePoint reported a net loss of $59.7 million, or $0.85 per share, compared to a loss of $29.4 million, or $0.54 per share, in the same quarter of 2024. The loss per share of $0.85 missed analyst estimates of $0.79. Total revenue for the quarter plummeted to $966,000, a 90.82% decrease from $10.5 million in the prior-year period, and significantly below the analyst consensus estimate of $3.329 million.

The company attributed the increased losses to higher operating expenses, which rose to $63.0 million from $43.3 million in the previous year. This increase was primarily driven by escalating clinical trial costs related to ongoing Phase 3 trials for DURAVYU, EyePoint's lead product candidate for wet age-related macular degeneration (AMD). Despite the widening losses, EyePoint highlighted positive developments in its pipeline, including the completion of enrollment for its Phase 3 LUGANO and LUCIA trials for DURAVYU, with data readouts expected in mid-2026. The company also announced the initiation of a pivotal Phase 3 program for diabetic macular edema (DME), with first patient dosing anticipated in Q1 2026.

While the quarterly results disappointed investors, EyePoint emphasized its strong financial position, reporting $204 million in cash, cash equivalents, and marketable securities as of September 30, 2025. The company further bolstered its finances with a recent $172.5 million equity financing, which is expected to extend its cash runway into the fourth quarter of 2027. This financial cushion is crucial as EyePoint continues to advance its clinical programs and prepares for potential commercialization of DURAVYU.