Kodiak (KOD) Beats Q3 Earnings, Provides Pipeline Updates
Kodiak Sciences KOD reported a third-quarter 2023 loss per share of 95 cents, narrower than the Zacks Consensus Estimate of a loss of $1.41. The company had incurred a loss of $1.47 per share in the year-ago quarter.
Currently, KOD does not have any approved products in its portfolio. As a result, it is yet to generate revenues.
Quarter in Detail
Research and development expenses were approximately $36.2 million in the reported quarter, down about 41% year over year. The decrease was due to the reduction in expense during the pause of the tarcocimab development program and equity award forfeitures related to the 2021 Long-Term Performance Incentive Plan.
General and administrative expenses were $18.3 million, marginally up on a year-over-year basis, primarily due to lower non-cash stock-based compensation expenses.
As of Sep 30, 2023, Kodiak had cash, cash equivalents and marketable securities worth $345.7 million compared with $378.7 million as of Jun 30, 2023.
Year to date, shares of KOD have plunged 73.2% compared with the industry’s 24.1% fall.
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Business Updates
The company had previously paused further development of tarcocimab last summer after the failureof its GLEAM and GLIMMER studies in diabetic macular edema (DME). Post the failure of the tarcocimab program, Kodiak announced KSI-501, an anti-IL6 and anti-VEGF bispecific biopolymer conjugate, as its new lead developmental candidate.
However, during the third quarter of 2023, Kodiak announced positive top-line results from its pivotal BEACON study evaluating tarcocimab tedromer 5 mg in patients with macular edema due to retinal vein occlusion (RVO).Per the data readout, tarcocimab demonstrated strong durability and matched efficacy and comparable safety against aflibercept in a head-to-head comparative pivotal study over one year.
Furthermore, KOD recently announced positive top-line results from its phase III GLOW study evaluating tarcocimab tedromer 5 mg in moderately severe to severe non-proliferative diabetic retinopathy (NPDR). Per the data readout, the GLOW study met its primary endpoint and all key secondary endpoints with high statistical significance.
Kodiak previously announced, in its second-quarter earnings release, the success of its phase III DAYLIGHT study of tarcocimab in wet age-related macular degeneration (wet AMD), where the study met its primary efficacy endpoint.
The positive data readouts from DAYLIGHT, BEACON and GLOW studies give the company three successful phase III pivotal studies with tarcocimab tedromer across three different retinal vascular and exudative diseases, such as wet AMD, RVO and NPDR.
The company also held a meeting with the FDA to discuss the positive results from DAYLIGHT, BEACON and GLOW studies. Based on the feedback from the regulatory body, Kodiak has decided to reboot the tarcocimab tedromer development program. KOD believes that it has a clear regulatory pathway requiring one additional positive pivotal study to support a single biologics license application submission for all three indications, such as wet AMD, RVO and NPDR.
On the other hand, KSI-501 is currently being evaluated in a phase I study for patients with DME. During the third quarter, Kodiak completed the enrollment and dosing in the early-stage study of the candidate and continues to collect patient data.
KOD expects to share clinical data from the early-stage study in the first quarter of 2024. The company expects to develop KSI-501 both as its unconjugated protein and bioconjugate form. The company also believes that the KSI-501 has the potential to address both inflammatory diseases of the retina as well as the existing high-prevalence diseases of the retina, such as DME and wet AMD.
Kodiak Sciences Inc. Price and Consensus
Kodiak Sciences Inc. price-consensus-chart | Kodiak Sciences Inc. Quote
Zacks Rank and Stocks to Consider
Kodiak Sciences currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Apellis Pharmaceuticals APLS and Anixa Biosciences ANIX. While LGND sports a Zacks Rank #1 (Strong Buy), APLS and ANIX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2023 earnings per share has remained constant at $5.10. During the same time frame, the estimate for Ligand’s 2024 earnings per share has remained constant at $4.59. Year to date, shares of LGND have lost 15.5%.
LGND’s earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average surprise of 67.19%.
In the past 30 days, the Zacks Consensus Estimate for Apellis’ 2023 loss per share has widened from $4.38 to $4.59. During the same time frame, the estimate for Apellis’ 2024 loss per share has narrowed from $2.40 to $1.92. Year to date, shares of APLS have fallen 6.9%.
APLS beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative earnings surprise of 3.91%.
In the past 30 days, the Zacks Consensus Estimate for Anixa Biosciences’ 2023 loss per share has remained constant at 32 cents. During the same time frame, the estimate for Anixa Biosciences’ 2024 loss per share has remained constant at 37 cents. Year to date, shares of ANIX have lost 32%.
ANIX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 26.29%.
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Kodiak Sciences Inc. (KOD) : Free Stock Analysis Report
