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Kodiak Sciences' (KOD) Q3 Earnings Beat, Eye Candidate in Focus

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Kodiak Sciences Inc. (KOD - Free Report) reported a third-quarter 2022 loss per share of $1.47, narrower than the Zacks Consensus Estimate of a loss of $1.82. The company reported a loss of $1.30 per share in the year-ago quarter.

Kodiak Sciences currently does not have any approved product in its portfolio. As a result, the company is yet to generate revenues.

Shares of Kodiak Sciences have plunged 92.1% this year compared with the industry’s decline of 20.6%.

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Quarter in Detail

Research and development expenses were $61.7 million in the quarter, up 10.2% year over year. The increase was driven by higher non-cash stock-based compensation expenses.

General and administrative expenses were $17.8 million, up 54.7% on a year-over-year basis, driven by higher non-cash stock-based compensation expenses.

As of Sep 30, 2022, Kodiak Sciences had cash of $537.4 million compared with $597.9 million as of Jun 30, 2022.

Pipeline Updates

In the absence of an approved product in Kodiak Sciences’ portfolio, its pipeline development, especially its lead eye disease candidate (KSI-301, tarcocimab tedromer), which is being developed for treating various retinal vascular diseases, remains the primary focus.

Kodiak Sciences is evaluating tarcocimab in two phase III studies — GLEAM and GLIMMER — for treating patients with diabetic macular edema ("DME"). Top-line data from the same is expected in mid-2023, which is likely to form the primary basis for a licensing application and potential regulatory approval of tarcocimab.

KOD is also evaluating tarcocimab in the phase III DAYLIGHT study for treating patients with treatment-naïve wet age-related macular degeneration (wet AMD). Top-line data from the study is expected in mid-2023.

The phase III BEACON study is also evaluating tarcocimab in patients with treatment-naïve retinal vein occlusion or RVO.

In August 2022, the BEACON study met the primary endpoint of non-inferior change from baseline in visual acuity at week 24 for subjects dosed with tarcocimab versus Eylea (aflibercept) in patients with macular edema due to RVO. Tarcocimab was generally safe and well-tolerated in the study.

Eylea is an anti-VEGF treatment developed by Regeneron (REGN - Free Report) in collaboration with Bayer’s (BAYRY - Free Report) HealthCare unit.

Regeneron/Bayer’s Eylea has been approved by the FDA for multiple retinal indications, including DME, wet AMD and RVO.

While REGN records net product sales of Eylea in the United States, BAYRY records net product sales of Eylea outside the country.

KOD is also evaluating tarcocimab in the pivotal phase III GLOW study for treating patients with non-proliferative diabetic retinopathy without DME. Enrollment in this study is now complete, with top-line data from the same expected in the second half of 2023.

Kodiak Sciences Inc. Price, Consensus and EPS Surprise

Kodiak Sciences Inc. Price, Consensus and EPS Surprise

Kodiak Sciences Inc. price-consensus-eps-surprise-chart | Kodiak Sciences Inc. Quote

Zacks Rank & Stock to Consider

Kodiak Sciences currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is ASLAN Pharmaceuticals Limited , which sports a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Loss per share estimates for ASLAN Pharmaceuticals have narrowed 6.1% for 2022 and 5.7% for 2023 in the past 60 days.

Earnings of ASLAN Pharmaceuticals surpassed estimates in two of the trailing four quarters and missed the mark on the remaining two occasions. ASLN witnessed an earnings surprise of 1.64% on average.


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