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Trial Results Show New Drug Improves Dry Eye Symptoms
Research Report

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These study data from Aldeyra Therapeutics Inc. solidified the therapeutic's path to filing a new drug application, potentially in Q3/22, noted an H.C. Wainwright & Co. report.

Aldeyra Therapeutics Inc.'s (ALDX:NASDAQ) reproxalap was shown, via recent clinical trial results, to be effective for dry eye disease, reported H.C. Wainwright & Co. analyst Matthew Caufield in a July 13 research note. These data bode well for the new drug application (NDA) the biotech intends to submit to the U.S. Food and Drug Administration (FDA) for reproxalap, likely in Q3/22.

Reproxalap is a RASP, or reactive aldehyde species, inhibiting 0.25% ophthalmic solution to be administered topically.

"Reproxalap demonstrated robust and consistent dry eye disease benefit," added Caufield. "We view RASP inhibition as presenting a viable novel pathway in addressing current dry eye disease therapeutic limitations."

The approved dry eye disease treatments on the market, noted Caufield, can take months to have an appreciable effect, have inconsistent responses among patients, and can be uncomfortable, often causing patients to stop using them.

Caufield highlighted that the newly released positive data, from the vehicle-controlled crossover reproxalap trial, show the drug met primary and secondary endpoints with statistical significance.

With reproxalap, study participants exhibited improvement in:

1) Dry eye chamber ocular redness, primary endpoint, (p=0.0004). The benefit was observed initially at 10 minutes and then through the final 90 minutes after chamber entry.

2) Schirmer test tear production assessment after one day of dosing, primary endpoint, (p=0.0005). This result supports prior dosing activity and fourth dose activity versus single-day dosing.

3) Schirmer test greater than or equal to 10-millimeter responder analysis, secondary endpoint, (p=0.0361).

Other secondary endpoints reproxalap showed a benefit in were ocular dryness (p=0.0068), discomfort (p<0.0001), grittiness (p=0.0001), stinging (p=0.0001), burning (p<0.0001) and itching (p=0.0003).  

These "reflect a broad representation of prospective symptom benefit within a characteristically heterogeneous indication population," wrote Caufield.

Reproxalap also demonstrated a positive safety and tolerability profile. The most common drug-related adverse event was mild, fleeting discomfort at the administration site.

"This most recent data set provides direct RASP inhibition support for the prior TRANQUILITY-2 and TRANQUILITY trials," Caufield commented.

In the next step for its reproxalap program, Aldeyra will meet with the FDA for feedback before submitting the NDA, the most imminent near-term catalyst for the drug developer, according to Caufield.

The analyst also pointed out the FDA does not require all benefits of a prospective dry eye disease drug to be exhibited in one clinical trial. Rather, each benefit must be demonstrated in more than one clinical trial. This is the case with reproxalap, simplifying the approval path for it.

H.C. Wainwright has a Buy rating and a $15 per share price target on Aldeyra, the current share price of which is around $5.06.

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Disclosures for H.C.Wainwright & Co., Aldeyra Therapeutics, July 13, 2022

H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.

I, Matthew Caufield and Andrew S. Fein , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies. None of the research analysts or the research analyst’s household has a financial interest in the securities of Aldeyra Therapeutics (including, without limitation, any option, right, warrant, future, long or short position).

As of June 30, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Aldeyra Therapeutics. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. 

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services. The firm or its affiliates received compensation from Aldeyra Therapeutics for non-investment banking services in the previous 12 months.

The Firm or its affiliates did not receive compensation from Aldeyra Therapeutics for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

The Firm does not make a market in Aldeyra Therapeutics as of the date of this research report.

The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously. 

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