Outlook Therapeutics Faces 63.29% Stock Drop After FDA Rejects ONS-5010 Approval Again
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 01 2026
0mins
Should l Buy OTLK?
Source: NASDAQ.COM
- FDA Rejection: The U.S. FDA has once again declined to approve Outlook Therapeutics' biologics license application for ONS-5010, leading to a significant 63.29% drop in after-hours trading, as the additional data submitted did not alter the FDA's previous conclusion.
- Lack of Confirmatory Evidence: In its complete response letter, the FDA noted that while one study demonstrated efficacy, further confirmatory evidence is required for approval, without specifying what type of evidence would be acceptable, thus increasing uncertainty for future approvals.
- International Market Expansion: Outlook Therapeutics is exploring all potential pathways for U.S. approval while highlighting that LYTENAVA has received marketing authorization in Europe and became commercially available in Germany and the UK in June 2025, making it the only authorized ophthalmic formulation for wet AMD in those regions.
- Significant Stock Impact: Outlook Therapeutics' stock closed at $1.58 on December 31, and further declined to $0.58 in after-hours trading, reflecting a pessimistic market sentiment regarding the company's future prospects.
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Analyst Views on OTLK
Wall Street analysts forecast OTLK stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 0.441
Low
0.50
Averages
3.83
High
10.00
Current: 0.441
Low
0.50
Averages
3.83
High
10.00
About OTLK
Outlook Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on developing and commercializing ONS-5010/LYTENAVA (bevacizumab-gamma), an ophthalmic formulation of bevacizumab for use in retinal indications. It is advancing ONS-5010 / LYTENAVA (bevacizumab-vikg), an investigational ophthalmic formulation of bevacizumab for the treatment of wet age-related macular degeneration (wet AMD), diabetic macular edema (DME), and branch retinal vein occlusion (BRVO). Bevacizumab-vikg is a recombinant humanized monoclonal antibody (mAb) that selectively binds with high affinity to all isoforms of human vascular endothelial growth factor (VEGF) and neutralizes VEGF’s biologic activity through a steric blocking of the binding of VEGF to its receptors Flt-1 (VEGFR-1) and KDR (VEGFR-2) on the surface of endothelial cells. ONS-5010/LYTENAVA, consisted of three clinical trials which it refers to as NORSE ONE, NORSE TWO and NORSE THREE.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Clinical Data Support: The Biologics License Application (BLA) for ONS-5010 is backed by data from the NORSE TWO trial, which demonstrated significant visual acuity improvements at 12 months, achieving its primary endpoint, thus reinforcing the reliability of the treatment effect despite the FDA's request for additional evidence.
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- FDA Meeting Request: Outlook Therapeutics has submitted a Type A meeting request regarding its ONS-5010 after receiving a Complete Response Letter (CRL) from the FDA on December 30, 2025, which cited a lack of substantial evidence of effectiveness, indicating a communication gap with the FDA.
- Clinical Data Support: The Biologics License Application (BLA) for ONS-5010 is backed by data from the NORSE TWO trial, which demonstrated significant visual acuity improvements at 12 months, achieving its primary endpoint, thus reinforcing the reliability of the treatment effect despite the FDA's request for additional evidence.
- Favorable Safety Profile: ONS-5010 exhibited a safety profile consistent with the control arm (ranibizumab), and the FDA has never expressed any safety concerns, laying a foundation for future market approval and potentially providing patients with a high-quality treatment option.
- European Market Expansion: LYTENAVA™ has received marketing authorization in the EU and UK and has been commercialized in Germany and the UK, with Outlook Therapeutics planning to expand its commercial presence in additional European countries, demonstrating a proactive global strategy.
See More
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- Positive Stock Performance: The Dow Jones gained approximately 319 points to close at 48,382.39, while the S&P 500 rose 0.19% to 6,858.47, reflecting an overall positive trend in the market, despite the Nasdaq Composite slightly declining by 0.03%.
- Strong Chip Stock Rebound: Key chip stocks, including Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU), showed strong gains during the session, reflecting ongoing investor confidence in tech stocks, even as overall market sentiment remains neutral.
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See More
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- Investor Sentiment: While some health care stocks gained, the overall market sentiment remains complex as investors assess macroeconomic factors that could impact the health industry alongside industry-specific developments.
- Industry Dynamics: The volatility within the health sector highlights investor sensitivity to policy changes and market demand, particularly in the current economic climate, where the performance of health stocks may influence broader investment strategies.
- Future Outlook: As the health sector faces both challenges and opportunities, investors need to closely monitor relevant policies and market trends to make more informed investment decisions moving forward.
See More
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- Stock Price Reaction: Following the announcement, shares of Intelligent Bio fell to $7.65, reflecting market concerns regarding the company's future financial health and potentially affecting its ability to secure further funding.
- Market Dynamics: While Intelligent Bio's stock plummeted, other stocks such as Lavoro Limited and Ironwood Pharmaceuticals surged by 181% and 57.7% respectively, highlighting a divergence in market performance among different companies.
- Investor Focus: The announcement of this capital raising plan may prompt investors to reassess Intelligent Bio's strategic direction, particularly in the current market environment where the necessity and timing of fundraising are critically important.
See More
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- Manufacturing PMI Decline: The S&P Global Manufacturing PMI fell from 52.2 to 51.8 in December, indicating a slowdown in manufacturing activity that could impact future economic growth expectations, prompting businesses to adjust strategies to navigate potential market challenges.
- ChowChow Cloud Stock Surge: ChowChow Cloud International Holdings Limited saw its shares rise 29% to $0.78 after reporting year-over-year revenue and net income growth for H1 2025, showcasing the company's strong performance and growth potential in the market.
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- Market Reaction: This news has attracted investor attention, boosting Baidu's market capitalization and reflecting confidence in its future growth potential, particularly against the backdrop of rapid advancements in the technology industry.
- Spinoff Strategy: By pursuing this spinoff, Baidu aims to focus on its core business while providing Kunlunxin with an independent capital operation platform, thereby improving resource allocation efficiency and accelerating technological innovation, which will further solidify its leadership in AI and semiconductors.
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