Kodiak Q3 Loss Narrower Than Expected, Pipeline Development in Focus

Core Viewpoint - Kodiak Sciences reported a narrower loss of 84 cents per share in Q3 2024, compared to a loss of 95 cents per share in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 90 cents [1] Financial Performance - Research and development expenses decreased by 12% year over year to $31.9 million, attributed to lower manufacturing costs and reduced clinical study expenses for its lead candidate, tarcocimab [2] - General and administrative expenses fell by 19% year over year to $14.8 million, mainly due to lower noncash stock-based compensation expenses [2] - As of September 30, 2024, Kodiak had cash, cash equivalents, and marketable securities totaling $197.9 million, down from $219.2 million as of June 30, 2024, with the company confident that this balance can support operations into 2026 [4] Pipeline Developments - Kodiak is conducting the phase III GLOW2 study to evaluate the efficacy and safety of tarcocimab in treatment-naïve patients with diabetic retinopathy, which may contribute to a marketing authorization application if successful [5] - The company is also studying KSI-501, a dual inhibitor designed to target inflammation and abnormal angiogenesis in retinal vascular diseases [6] - Tarcocimab will be evaluated as a second investigational arm in the phase III DAYBREAK study, alongside KSI-501 [7] - Kodiak is enrolling patients in the phase Ib APEX study for KSI-101, targeting diabetic macular edema and macular edema secondary to inflammation [8] - The APEX study aims to assess safety and tolerability and identify dose levels for late-stage development, with pivotal studies planned for KSI-101 in MESI [9]