Opthea Ltd (ASX: OPT) shares have returned to trade with an almighty thud on Wednesday.
The ASX biotech share resumed trading today after being suspended for more than a year, from March 2025 to June 2026.
Unfortunately for its frustrated shareholders, the ASX share is down a massive 97% to 1.8 cents at the time of writing.
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Why is this ASX share crashing?
Investors have been selling in response to the failure of an important clinical trial last year and a major reset of the business after a long suspension and strategic review.
Opthea has announced that it is relaunching with a new strategy focused on OPT-302 as a potential treatment for lymphangioleiomyomatosis (LAM).
LAM is a rare, chronic lung disease that primarily affects women. The company believes OPT-302 could have a role because the disease is associated with elevated VEGF-C and VEGF-D signalling, which OPT-302 is designed to inhibit.
This represents a significant change in direction for Opthea from its original focus of retinal diseases.
What is the new plan?
The ASX share is planning a staged development program over around 18 months.
The first stage is already underway and focuses on preclinical biology and inhalation studies. This includes testing whether OPT-302 can be delivered through a nebulised formulation for use in the lungs.
If that work is successful, the company may move into early human studies to assess tolerability and whether the drug affects the relevant biological pathways.
A third stage would then test OPT-302 in patients with LAM, looking for early signs of biological and clinical activity, including measures related to lung function.
Opthea said progression between stages will be subject to board review and predefined scientific, operational, and capital allocation criteria.
Funding position
Opthea advised that it had $31.2 million in cash and cash equivalents at 31 March 2026.
The company estimates that its LAM development program, together with corporate and operational costs, will require approximately $13.1 million over the 18-month period following reinstatement to the ASX.
This suggests the company believes it has enough working capital to pursue its stated objectives for at least 18 months.
Name change proposal
The ASX share has also announced plans to change its name to Ceryvyn Therapeutics.
It notes that this proposed name change is intended to reflect the company's new strategic focus and future development direction.
Opthea's executive chair, Dr Jeremy Levin, said:
Opthea is relaunching with a focused strategy centered on OPT-302 and a clear objective: to evaluate a differentiated, mechanism-driven therapeutic opportunity in LAM while leveraging the Company's substantial existing development, manufacturing and clinical infrastructure.
We believe this approach provides a highly capital-efficient pathway into an area of significant unmet medical need. LAM is a debilitating rare disease with limited treatment innovation and no approved therapies directly targeting aberrant VEGF-C and VEGF-D signaling, biological pathways strongly associated with disease progression and directly targetable by OPT-302.
While Opthea is returning to market with a new plan, it remains an early-stage and high-risk biotech story.
And judging by the share price reaction, they aren't overly convinced with the change of direction.
