The high-profile hedge fund run by veteran stockpicker Phil King has slashed the value of its stake in Opthea by two-thirds after the eye treatment biotech said it faced collapse after the failure of a key clinical trial.

While the company last traded at 60¢ per share, before it entered an extended pause ahead of the publication of the trial result, Regal Partners told investors it was now valuing Opthea at 20¢ per share.