Aldeyra (ALDX) Stock Rallies 43% in One Week: Here's Why

Core Viewpoint - Aldeyra Therapeutics is advancing its clinical-stage immunology pipeline, focusing on reproxalap for dry eye disease and allergic conjunctivitis, with significant recent developments impacting its stock performance and future prospects [1][4]. Company Developments - Aldeyra's lead candidate, reproxalap, is in two phase III studies for dry eye disease and allergic conjunctivitis [1]. - The company announced a clinical development plan on March 28, aimed at resubmitting a new drug application (NDA) for reproxalap to the FDA [1]. - Following a complete response letter (CRL) from the FDA in November 2023, Aldeyra plans to initiate a dry eye chamber clinical study in the first half of 2024 to address efficacy concerns raised by the FDA [4][5]. Financial Position - As of December 31, 2023, Aldeyra reported cash and cash equivalents of $142.8 million, projected to fund operations beyond 2026 [6]. Licensing Agreement - Aldeyra has an exclusive option agreement with AbbVie Inc. for reproxalap, which could yield up to $300 million in milestone payments, including a $100 million payment upon FDA approval [7][8]. Clinical Trials - The upcoming dry eye chamber study will enroll approximately 100 patients to assess ocular discomfort, with the goal of demonstrating statistically significant improvement with reproxalap compared to a vehicle [5]. - Aldeyra plans to conduct an additional dry eye chamber clinical study to account for disease heterogeneity and site differences [6]. Stock Performance - Year-to-date, Aldeyra's shares have increased by 33.5%, contrasting with a 5.7% decline in the industry [2]. - Recently, shares rallied 43.3% following the announcement of the clinical development plan [1].