Kodiak Sciences Inc (KOD) Reports Q3 2023 Financial Results: Net Loss Narrows, R&D Expenses ...
Kodiak Sciences Inc (NASDAQ:KOD) ended Q3 2023 with a strong cash position of $345.7 million.
Net loss improved to $50.0 million in Q3 2023 from $77.0 million in Q3 2022.
Research and Development (R&D) expenses decreased to $36.2 million in Q3 2023 from $61.7 million in Q3 2022.
Tarcocimab pivotal program shows promising results in phase 3 GLOW study.
On November 14, 2023, Kodiak Sciences Inc (NASDAQ:KOD) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023. The company reported a narrowed net loss and a decrease in R&D expenses, alongside significant progress in its clinical programs for retinal diseases.
Financial Performance Overview
Kodiak Sciences Inc (NASDAQ:KOD) reported a net loss of $50.0 million for the third quarter of 2023, or $0.95 per share on both a basic and diluted basis. This represents an improvement from the net loss of $77.0 million, or $1.47 per share, for the same period in the previous year. The net loss for the quarter included non-cash stock-based compensation of $13.9 million, down from $26.2 million in Q3 2022.
R&D expenses for Q3 2023 were $36.2 million, including $2.7 million in non-cash stock-based compensation. This is a significant reduction from the $61.7 million (with $14.9 million in stock-based compensation) spent in Q3 2022. The decrease in R&D expenses was primarily due to a reduction in expense during the pause of tarcocimab development and equity award forfeitures related to the 2021 Long-Term Performance Incentive Plan.
General and administrative (G&A) expenses were slightly up at $18.3 million in Q3 2023 compared to $17.8 million in Q3 2022, with non-cash stock-based compensation of $11.2 million for both periods.
Business Highlights and Clinical Pipeline
Dr. Victor Perlroth, CEO of Kodiak, highlighted the company's pipeline, including two molecules built with their ABC Platform and one non-conjugated protein. The tarcocimab program is set for a reboot following strong data from the GLOW diabetic retinopathy study and the BEACON retinal vein occlusion (RVO) study. The company plans to run an additional pivotal study that could support a single Biologics License Application (BLA) for multiple retinal diseases.
The GLOW phase 3 study of tarcocimab met its primary endpoint, showing a 29-fold increased response rate ratio in patients with at least a 2-step improvement on the Diabetic Retinopathy Severity Scale (DRSS) score. The study also met all key secondary endpoints, demonstrating significant reductions in the proportion of patients developing sight-threatening complications compared to the sham group.
The Phase 1 study of KSI-501 ABC has completed its enrollment and dosing phases, with clinical data expected to be presented in the first quarter of 2024. Kodiak also announced plans to develop an enhanced formulation of KSI-501 ABC and the KSI-501 P unconjugated protein.
Financial Tables Summary
The condensed consolidated statements of operations and balance sheet data provide a snapshot of Kodiak Sciences Inc (NASDAQ:KOD)'s financial health. The company's cash and cash equivalents stood at $345.7 million as of September 30, 2023, a decrease from $478.9 million at the end of 2022. The working capital was reported at $280.2 million, and the total assets amounted to $547.7 million. The accumulated deficit increased to $1.09 billion, reflecting the ongoing investments in R&D. Total stockholders' equity was $302.4 million, a decrease from the previous year's $436.2 million.
In conclusion, Kodiak Sciences Inc (NASDAQ:KOD) has demonstrated a reduction in net loss and R&D expenses, maintaining a robust cash position to support its clinical pipeline. The promising results from the tarcocimab program and the advancement of KSI-501 highlight the company's commitment to developing innovative treatments for retinal diseases. As Kodiak continues to leverage its ABC Platform and clinical experience, investors and stakeholders will be watching closely for the outcomes of upcoming studies and potential regulatory milestones.
Explore the complete 8-K earnings release (here) from Kodiak Sciences Inc for further details.
This article first appeared on GuruFocus.
