Piper Sandler has begun coverage of OKYO Pharma Ltd. (NASDAQ: OKYO), assigning an Overweight rating and setting a $7.00 price objective. The stock is trading at $1.76, which sits beneath the analyst target range of $5 to $13 referenced in the coverage. The company also holds a consensus Strong Buy rating across analysts.
The research firm's thesis emphasizes OKYO’s lead asset, urcosimod, being developed for Neuropathic Corneal Pain (NCP) occurring after ocular surgery or in connection with Dry Eye Disease. According to the coverage, Phase 2 studies in both indications showed a meaningful efficacy signal on pain endpoints while maintaining a clean safety profile. The firm highlighted that there are currently no approved treatments for NCP and described the unmet need in this indication as high.
Piper Sandler signaled encouragement about the early clinical results and identified the Phase 2b/3 trial in NCP as the next major clinical milestone. That trial is expected to commence in the second quarter of 2026, with topline data anticipated in the first half of 2027. The firm pointed to those data as the next potential catalyst for the stock.
Market performance has shown recent volatility. The stock is down 15% year-to-date, even as it returned 61% over the past 12 months. The coverage noted these moves while also directing investors to platform-specific tools that provide additional tips and financial metrics.
In parallel with the new coverage, OKYO announced a $20.0 million public offering of ordinary shares. The company priced 10,815,000 shares at $1.85 apiece and granted the underwriter, Piper Sandler & Co., a 30-day option to purchase an additional 1,622,250 shares at the same price. Gross proceeds are expected to be approximately $20.0 million, potentially rising to about $23.0 million if the option is fully exercised.
Corporate finance changes include a transition of OKYO’s At-The-Market (ATM) equity offering facility to Leerink Partners LLC, which will act as sales agent in place of B. Riley Securities Inc. Separately, OKYO appointed Dr. Flavio Mantelli, formerly of Domp e9 farmaceutici S.p.A., as Chief Medical Officer to lead the neuropathic corneal pain program.
OKYO also plans to present its urcosimod NCP study findings at the 2026 American Society of Cataract and Refractive Surgery (ASCRS) Annual Meeting.
Clear summary
Piper Sandler initiated coverage of OKYO Pharma with an Overweight rating and a $7.00 price target, citing encouraging Phase 2 efficacy and safety signals for urcosimod in neuropathic corneal pain. The company has launched a $20.0 million public offering, changed its ATM sales agent to Leerink Partners, and named Dr. Flavio Mantelli as Chief Medical Officer. A Phase 2b/3 study is planned to start in Q2 2026 with topline results expected in H1 2027, which the firm views as the next major catalyst.
Key points
- Piper Sandler initiates OKYO Pharma with an Overweight rating and $7.00 price target; current share price is $1.76 and analyst target range referenced is $5 to $13.
- Urcosimod showed meaningful pain efficacy signals and a clean safety profile in Phase 2 studies for NCP related to post-ocular surgery and Dry Eye Disease; no approved therapies currently exist for NCP.
- Corporate actions include a 10,815,000-share public offering priced at $1.85 per share (gross proceeds ~ $20.0 million), an underwriter option for 1,622,250 additional shares, an ATM sales agent change to Leerink Partners LLC, and the appointment of Dr. Flavio Mantelli as Chief Medical Officer.
Risks and uncertainties
- Clinical timing and outcomes - The Phase 2b/3 trial is scheduled to begin in Q2 2026 with topline data expected in H1 2027; the stock’s near-term outlook is tied to these future trial milestones.
- Financing and potential dilution - The announced public offering could dilute existing shareholders if the underwriter option is exercised, with gross proceeds expected to be approximately $20.0 million and potentially up to $23.0 million.
- Market volatility - The share price has experienced recent volatility, including a 15% decline year-to-date despite a 61% gain over the past year, reflecting uncertain investor sentiment.
These items touch multiple sectors: pharmaceutical and biotech development for the clinical program, healthcare services for the unmet NCP indication, and capital markets activities through the public offering and ATM changes.