KOD - Kodiak Sciences sheds over $2B market cap after wet AMD setback for lead asset

Kodiak Sciences (KOD -79.8%), a clinical-stage biotech focused on eye diseases, has lost more than $2B of its market capitalization on Wednesday after the company said its lead asset KSI-301 did not meet the primary endpoint in a Phase 2b/3 trial for wet age-related macular degeneration. The 559-patient study was designed to evaluate the long-term non-inferiority of KSI-301 compared to Regeneron’s (REGN +1.6%) blockbuster eye treatment Eylea. Commenting on the setback, Morgan Stanley analyst Matthew Harrison, with an Equal Weight rating and a $77 per share target on the stock, wrote: “We expect KOD to face significant pressure today, but see value above cash given the potential with other studies.” While the investigator Dr. Carl Regillo blamed the trial design for the underperformance of the anti-VEGF therapy, Kodiak's Chief Executive Officer Victor Perlroth said that the issues had been addressed in several other wet-AMD trials for KSI-301. Truist Securities, which has

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Kodiak Sciences sheds over $2B market cap after wet AMD setback for lead asset