Swiss startup Oculis is developing three highly promising treatments for eye diseases. We meet its CEO, Riad Sherif, at the company’s premises in Lausanne.
It is well known that CEOs generally travel a lot. Riad Sherif is no exception. The head of Oculis divides his time between the company’s headquarters in Zug and its three other sites in Lausanne, Reykjavik (Iceland) and Newton (United States). Not to mention the various ophthalmology conferences he attends around the world. In May 2025, for example, he was at the Retina World Congress in Fort Lauderdale, US, to present the positive results of clinical trials of treatments developed by Oculis. Between trips, he took the time to welcome Swissquote Magazine to his offices in Lausanne. Interview.
The prevalence of eye diseases is increasing worldwide. Is there cause for concern?
Yes, the prevalence of all eye diseases is increasing sharply, mainly for three reasons: an ageing population, diabetes and screen time. In this somewhat gloomy context, there is nevertheless some good news: ophthalmology is a highly innovative sector. There is a very large pipeline of treatments currently in development that will come onto the market in the next few years. This makes me very optimistic.
This pipeline includes solutions developed by Oculis. What will OCS-01 – your most advanced molecule – bring to the treatment of diabetic macular oedema, compared to solutions already on the market?
Current treatments are very restrictive for patients. They have only two options: regular injections into the eye or implants. As these are invasive treatments, patients tend to put them off. In addition, the time it takes to get an appointment delays their treatment. The Iris study, conducted in the United States among 200,000 patients, showed that 60% of people with diabetic macular oedema had not been treated in the 12 months following diagnosis. However, it is important to treat this disease as early as possible to prevent it from worsening. Furthermore, other studies have shown that diabetics do not follow prescriptions: instead of receiving the recommended 10 or 11 injections per year, they only visit the ophthalmologist four times a year on average. I do not blame them. On the contrary. I have a lot of empathy for diabetics, because when they suffer from eye complications, these are in addition to other health problems.
In this context, OCS-01 could be an ideal solution. It is a simple eye drop that does not require an injection to be administered, while offering a potentially similar effect to existing drugs. Our drug could therefore be used earlier because it is non-invasive, making life easier for patients who would no longer need to visit their ophthalmologist several times a year. It could become the first-line treatment for diabetic macular oedema – a market estimated at $3 to $4 billion.
Oculis has three drug candidates, each targeting markets worth several billion dollars a year
How is it that OCS-01 does not need to be injected, unlike competing products?
OCS-01 is a highly concentrated but stable product that has the unique ability to remain in the eye for a long time without causing side effects on the cornea. It gradually permeates all the barriers of the eye, adapting to each one. It’s a remarkable achievement. Our technology is based on research conducted in Iceland by the company’s two founders, Professors Einar Stefánsson and Thorsteinn Loftsson. It took them years to overcome all the obstacles. When they began their research, around 10 companies were working on similar products. Ours is currently the only one in Phase III, which is the final stage of development before commercialisation. All the other projects have been abandoned.
OCS-01 is currently in Phase III clinical trials – the final stage before possible authorisation. If all goes well, when could it reach the market?
The results of the two Phase III trials conducted on 800 patients will be known in the second quarter of next year. If they prove positive, registration by the Food and Drug Administration (FDA) should then take a year. OCS-01 could therefore be marketed in the United States by 2027, then in Europe and elsewhere in the world. The potential is enormous. In the United States, approximately 1.8 million people have been diagnosed with diabetic macular oedema. Of these, 900,000 are receiving treatment, but only 500,000 are responding optimally. In other words, 1.3 million American patients remain poorly treated and could benefit from an alternative such as OCS-01. On a global scale, the problem is even greater.
In addition to macular oedema, we are also testing our molecule for other therapeutic applications. It is a very effective product for treating complicated eye inflammation, particularly post-operative inflammation.
Another of your products has been the subject of much discussion this year: OCS-05, which has shown positive results in the treatment of a rare disease called optic neuritis. Why have these results attracted so much interest from the scientific and financial communities?
Optic neuritis – acute inflammation of the optic nerve – is indeed a relatively rare disease that affects 150,000 patients a year, two-thirds of whom have multiple sclerosis. But it is a condition that is particularly close to my heart because it affects young people (average age 32), mainly women, who will gradually lose their sight because there is currently no treatment available. When I think of this disease, I imagine a young mother going blind.
In a Phase II clinical trial, the results of which were published in January 2025, our latest drug candidate, called Privosegtor or OCS-05, showed excellent results – a first in the treatment of this disease. After three months, patients had significantly improved visual acuity – an average of 18 letters on an eye test, bearing in mind that a gain of 15 letters doubles the quality of vision. This is only an initial trial that requires confirmation, but these results are already solid and very promising.
And there’s more. In order to evaluate the effectiveness of our drug candidate, we measured three criteria: improvement in patients’ vision, retinal thickness and the presence of a biomarker characteristic of neuron destruction. Our product showed excellent results in all three criteria. In other words, it could act as a neuroprotector, which is truly revolutionary. For years, everyone has been searching for a treatment that protects neurons, without success until now. And presently we have something that has shown exceptional results. This opens up immense possibilities, not only in ophthalmology, but also in neurology for the treatment of neurodegenerative diseases.
Conducting clinical trials is extremely expensive. Does Oculis have the financial strength to continue its development on its own?
Last February, we raised $100 million, then in August we obtained a loan facility with BlackRock for 100 million Swiss francs. So we are well funded, enough to move forward with all our projects at least until the end of 2027, without using the credit line.
As for the possible commercialisation of OCS-01, we want to do it ourselves in the United States. We will focus on this consolidated market and probably seek partnerships for the rest of the world.
Our share price does not yet reflect its full potential
Oculis has its origins in Iceland, your headquarters are in Switzerland, and you have chosen to focus on the United States, where you are listed on the stock exchange... Why such a dispersed approach?
OCS-01 was developed in Iceland, where we still have a formulation laboratory. Subsequently, Oculis was supported in its development by Novartis Venture Fund and other investment funds, which led to the company’s establishment in Switzerland. It is an advantage to be here because we are at the heart of Health Valley in a country that has real expertise in pharmaceutical research. Finally, the United States is the largest market for pharmaceutical products, and for a biotech company, it is quite natural to be listed on the Nasdaq. It is the largest and most liquid market in the world. That’s where you need to be to have the opportunity to find as many investors as possible.
Do you think Oculis is currently well valued?
Ask any CEO of a listed company that question and they will tell you that their company should be better valued (laughs). More seriously, I think our share price does not yet reflect its full potential. The market has not yet fully integrated OCS-05 into our valuation. The reason is simple: until now, neuroprotective drug candidates have always failed. It is up to us to educate the market and investors to convince them of the potential of OCS-05. I am very optimistic.
But all your products are still in the clinical trial stage. So there is a potential risk of failure for OCS-05, as well as for your other drug candidates...
That’s true, but I believe the risk is manageable in our case. If we add OCS-02, which is entering Phase II/III trials for dry eye syndrome, Oculis has three drug candidates, each targeting markets worth several billion dollars a year. If just one of these products is commercialised, the company will be profitable and generate more than a billion dollars in revenue. Given the excellent results we have achieved so far, I am very confident.
Dry eye syndrome affects one in three people worldwide. It is indeed a huge potential market. What does OCS-02 offer over existing treatments?
Currently, 90% of patients with dry eye syndrome stop treatment after less than a year because they are dissatisfied. We have developed a genetic test that can predict which individuals will respond very positively to our product. This is precision medicine that improves care and reduces healthcare costs by avoiding unnecessary prescriptions.
