Opthea parts with CEO, lays off over 80% of company

(Image Credit: AdobeStock/Andrii Yalanskyi)

Opthea has released a corporate update following its settlement of the Development Funding Agreement ("DFA") with the 2 investors under the DFA.¹ The company previously provided an update in April 2025² stating its intention to lay off approximately 65% of the company after the COAST trial failed to meet its primary end point.³

Opthea notes that its “overall strategy to streamline its operations” has resulted in layoffs of over 80%, as well as reducing the Board of Directors by over 50% and renegotiating all contracts related to the clinical trials. This is an increase from the projected 65% layoffs the company announced in April 2025.

The company also announced its intention to discontinue the development of sozinibercept in wet age-related macular degeneration (AMD) in April 2025. Following this decision, it was announced that certain termination events under the DFA could have triggered payments by the company of up to $680 million to Ocelot SPV LP and Sanba II Investment Company, the 2 DFA investors.

Opthea stated that it has reached a binding agreement with the DFA Investors to terminate the DFA, under which the investors will collectively receive from the company a one-time payment of $20 million. Upon payment and issuance of equity equivalent to 9.99% of the total issued share capital of the company on a fully diluted basis, being 136,661,003 fully paid ordinary shares, the DFA will be terminated.

Due to this, the company noted that they no longer need to avail themselves of the "safe harbor" protections under section 588GA of the Corporations Act 2001 (Cth).

Additionally, current CEO Fred Guerard, PharmD, MS, will depart the company on September 1, 2025, and Tom Reilly, current CFO, and Sujal Shah, current director, will depart on September 15, 2025.

Jeremy Levin, Chairman at Opthea, commented on the restructure, saying, “The Board of Directors and I are very grateful for Fred and Tom’s dedication and professionalism in navigating these complex negotiations. I would also like to express my gratitude to Sujal Shah for his commitment to the Board of Directors.”

Levin will continue as chairman as well as acting as a consultant to Opthea to fulfill the roles of the outgoing CEO effective from September 1, 2025. “I am honored to continue to act as chairman and to assume these additional responsibilities for the company as we enter a new phase and evaluate all options for the future," said Levin.

Over the next 6 months the company intends to conduct a full strategic review, as well as targeted internal development.

References:

1. Opthea Provides Corporate Update. Published August 19, 2025. Accessed August 19, 2025. https://ir.opthea.com/news-releases/news-release-details/opthea-provides-corporate-update-2

2. Harp MD. Opthea to lay off approximately 65% of company. Published April 10, 2025. Accessed August 19, 2025. https://opusgtx.com/pipeline-programs/ird-programs/

3. Harp MD. Opthea phase 3 clinical trial, COAST, in patients with wet age-related macular degeneration fails to meet primary end point. Ophthalmology Times. March 24, 2025. Accessed August 19, 2025. https://www.ophthalmologytimes.com/view/opthea-phase-3-clinical-trial-coast-in-patients-with-wet-age-related-macular-degeneration-fails-to-meet-primary-endpoint