KOD - Kodiak Sciences upgraded to outperform at JP Morgan on more favorable risk profile

JP Morgan has upgraded Kodiak Sciences (KOD -1.9%) to outperform from neutral following results from a pivotal study on wet AMD treatment KSI-301 and conversations with key opinion leaders (KOLs). However, the firm lowered its price target to $90 from $124 (~45% upside from yesterday's close). Analyst Anupam Rama said that following last month's JP Morgan Health Care Conference, KOLs he has spoken with say that a majority of patients getting to a 4-5 month treatment interval with KSI-301 is a win for Kodiak. In addition, interviewees indicated that achieving non-inferiority to Avastin (bevacizumab) was a win. "Importantly, we now see a more favorable reward/risk set up, even with a more conservative model (JPMe KSI-301 peak sales ~$3-4B across indications vs ~$4-5B prior; Street consensus ~$4B). Kodiak shares rose yesterday after the disclosure that a company director bought shares.

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Kodiak Sciences upgraded to outperform at JP Morgan on more favorable risk profile