William Blair initiated coverage on Ocular Therapeutix (NASDAQ:OCUL) with an Outperform rating, setting a fair value target of $18 per share. The firm is optimistic about the biotech’s lead asset, Axpaxli, a sustained-release hydrogel implant containing axitinib that’s currently undergoing Phase III trials for neovascular age-related macular degeneration (nAMD).

Ocular’s long-acting therapeutic approach could be a game-changer for nAMD treatment, where patients often face frequent injections. Axpaxli, as part of the emerging tyrosine kinase inhibitor (TKI) class, aims to improve both efficacy and treatment durability—a combination William Blair believes could position it as best-in-class.

The firm also sees potential for Axpaxli’s use to expand beyond nAMD and into other retinal vascular diseases, adding to the long-term opportunity.