What happened

Shares of Ocular Therapeutix (OCUL -8.50%) were up by 49.6% for the week as of Thursday's market close, according to data provided by S&P Global Market Intelligence. The biopharmaceutical company specializes in finding therapies to treat diseases and conditions of the eye. The stock closed last week at $3.87 a share but rose to as high as $6.49 on Wednesday.

So what

The healthcare company, on Feb. 11, announced preliminary 10-month data on its phase 1 trial of OTX-TKI, an axitinib (a small molecule, multitarget, tyrosine kinase inhibitor) intravitreal (inside the eye) hydrogel implant to treat age-related macular degeneration (AMD), diabetic retinopathy and other diseases of the retina. The small trial, with 21 subjects, showed the therapy to be well tolerated with no notable serious adverse effects. 

Though the study is in the early stages, the jump was warranted because macular degeneration affects a large sector of the population. According to the Bright Focus Foundation, macular degeneration affects nearly 20 million adults in the U.S., is a leading cause of vision loss in Americans 60 and older, and a leading cause of irreversible blindness and visual impairment globally. The strong showing for the therapy also buoys the company's hope that it could treat a variety of vascular retinal diseases, including diabetic retinopathy. 

Now what

The company's lead therapy is Dextenza, a therapy to treat ocular inflammation and pain following ophthalmic surgery as well as for ocular itching associated with allergic conjunctivitis. In January, the company estimated that Dextenza would bring in $50.2 million in revenue in 2022, up 20% over 2021. The company could use another major product. Through nine months, its revenue was reported as $37.4 million, up 19%, year over year, but the company lost $55.7 million compared to a loss of $2.7 million in the same period a year ago. 

While there is plenty of competition for ocular drug delivery, the market is growing. A report by Insight Partners places the market at $16.4 billion in 2021, growing at a compound annual growth rate (CAGR) of 7.4% through 2028, reaching a $27 billion market by that time.