Why the Nova Eye (ASX:EYE) share price is surging 7% higher

The Nova Eye (ASX: EYE) share price is up 7.5% today following the publication of its LEAD trial results. We take a closer look.

The Nova Eye Medical Ltd (ASX: EYE) share price is in the green today. This comes after the company released positive results showing the efficacy of its 2RT treatment.

During mid-afternoon trade, the medical technology company's shares are up 7.58% to 36 cents.

What were the results?

In today's release, Nova Eye advised that it has published the results of its 5-year patient follow-up data from the LEAD trial in a recent publication of Ophthalmology Retina. The article discusses the long-term effect of subthreshold nanosecond laser (SNL) treatment on progression to late age-related macular degeneration (AMD).

The company said the LEAD trial was a randomised, controlled multi-centre study involving 292 patients over a 6-year period (2012 to 2018). The program assessed the efficacy of 2RT at the 3-year mark in patients suffering from intermediate AMD.

Of the enrolled patients that completed the 5-year review (222 patients), two groups were equally split. This consisted of the 2RT treatment group, and the other being the non-treatment group.

The published article states that when factoring the trial participants and additional data observed during the five-year post-LEAD review, the results are promising. It showed strong evidence of a reduction in the rate of progression in AMD when treated with 2RT.

What did management say?

Nova Eye Medical director Tom Spurling hailed the results, saying:

While these data have been calculated by the authors using post-hoc analysis, the improvement in the clinical response in patients without RPD at five years using is very exciting, particularly given these patients did not receive further 2RT treatment during the last two- year observation period.

Overall, there was a significant reduction in the rate of progression to late-stage AMD in these patients. This is of significant benefit to patients in deferring disease progression and thus maintaining their quality of life. It also supports our previously stated position that 2RT offers the potential to meet a major global unmet need to delay onset of blindness.

About the Nova Eye share price

The Nova Eye share price has lost almost half of its value since this time last year. The company's shares have been impacted by COVID-19, which has affected its medical equipment and devices business.

Based on the current share price, Nova Eye Medical commands a market capitalisation of close to $50 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Nova Eye Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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