Kodiak Sciences (KOD) Stock Soars 65% After Eye-Disease Drugs Pass Key Trial

TLDR

• Kodiak Sciences stock jumped roughly 65% in premarket trading to $54.42 after strong Phase 3 results.
• Two experimental drugs, Zenkuda and KSI-501, both hit their main goal in the DAYBREAK trial for wet age-related macular degeneration.
• The trial tested both drugs against Regeneron’s Eylea, the current standard treatment, and found them non-inferior.
• Kodiak plans to file for regulatory approval of Zenkuda in the fourth quarter.
• The move would mark Kodiak’s best single-day gain and its highest close since February 2022.

---

Kodiak Sciences (KOD) stock climbed about 65% in premarket trading on Monday, hitting $54.42 a share. The jump followed positive late-stage trial data for two of the company’s eye-disease drugs.

Kodiak Sciences Inc., KOD

The rally puts Kodiak on track for its best single-day percentage gain on record. It would also mark the stock’s highest close since February 2022.

The news came from the DAYBREAK study, a Phase 3 trial testing two drugs at once. Zenkuda and KSI-501 were both evaluated for treating wet age-related macular degeneration, a leading cause of vision loss in older adults.

Both drugs met the trial’s main goal. Researchers found they were non-inferior to Eylea, a drug made by Regeneron Pharmaceuticals that is currently the standard treatment for the condition.

How the trial was structured

Instead of running two separate trials, Kodiak combined both drug candidates into one study with a shared control group. That approach let the company test two different molecules against the same benchmark at the same time.

Zenkuda showed what the company called a potential new standard-of-care profile. It delivered quick relief after dosing along with longer-lasting benefits, according to Kodiak.

Both drugs target a protein that drives abnormal blood vessel growth in the eye. KSI-501 also works through a second pathway that helps reduce inflammation.

Zenkuda already has strong data behind it. The drug had prior Phase 3 wins in diabetic retinopathy and retinal vein occlusion, and it is considered close to ready for a full regulatory package once wet AMD data was added.

What analysts said before the results

Ahead of Monday’s announcement, UBS had a Buy rating on Kodiak with an $80 price target. The firm expected non-inferior results and dosing intervals of roughly three to three-and-a-half months.

A separate analyst had also kept a Buy rating on the stock, with a $58 price target set in mid-September. Both calls came ahead of the trial readout.

The broader market did not help Monday’s move along. The Nasdaq fell 1%, the S&P 500 dropped 0.6%, and the Dow slipped 0.5%, meaning Kodiak’s jump was driven entirely by its own news.

Kodiak Sciences focuses on drugs that treat the root causes of vision loss. It has had a fairly quiet year otherwise, aside from a 70% single-day surge back in March.

That earlier spike came after a separate positive readout for Zenkuda in diabetic retinopathy patients. Monday’s move builds on that momentum with a second successful trial result.

Following the DAYBREAK data, Kodiak said it plans to file a Biologics License Application for Zenkuda in the fourth quarter. That filing would seek formal approval to sell the drug.

If approved, Zenkuda would become Kodiak’s first commercial product. The company has never brought a drug to market before.

Kodiak estimates the global market for retinal vascular disease drugs at around $15 billion. The space already includes established players like Regeneron’s Eylea and Outlook Therapeutics’ Lytenava, which won approval for wet AMD in late July.

Kodiak shares are up about 16% year to date, narrowly ahead of the small-cap Russell 2000 index. The stock’s 52-week range spans from a low of $10.94 to a high of $47.84, a range Monday’s move would push well past.