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Kodiak Q3 Loss Narrower Than Expected, Pipeline Development in Focus

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Kodiak Sciences (KOD - Free Report) incurred a loss of 84 cents per share in the third quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 90 cents. The company had incurred a loss of 95 cents per share in the year-ago quarter.

The company currently does not have any approved products in its portfolio. As a result, it has yet to generate revenues.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

KOD’s Q3 Results in Detail

Research and development expenses were $31.9 million in the reported quarter, down 12% year over year. The decrease was mainly due to reduced expenditures owing to lower manufacturing costs and lower cost of clinical studies on its lead pipeline candidate, tarcocimab.

General and administrative expenses were $14.8 million, down 19% year over year, primarily due to lower non-cash stock-based compensation expenses.

Shares of Kodiak have rallied 74.3% so far this year against the industry’s decline of 4.5%.

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As of Sept. 30, 2024, Kodiak had cash, cash equivalents and marketable securities worth $197.9 million compared with $219.2 million as of June 30, 2024. The company believes that its current cash balance is enough to support its present and planned operations into 2026.

Kodiak’s Pipeline Updates

Kodiak is evaluating the efficacy and safety of tarcocimab in treatment-naïve patients with diabetic retinopathy (DR) in the phase III GLOW2 study. The study is currently enrolling patients. If successful, data from the GLOW2 study might serve as one of the two pivotal studies in one foundational indication, DR, for the marketing authorization application for tarcocimab.

KOD’s second clinical candidate, KSI-501, a dual inhibitor Trap-Antibody-Fusion bioconjugate molecule, is designed to target concurrent inflammation and abnormal angiogenesis observed in the pathogenesis of retinal vascular diseases.

Please note that the company plans to study tarcocimab as a second investigational arm in the DAYBREAK study to treat wet age-related macular degeneration, with KSI-501 being the first investigational arm. The phase III DAYBREAK study on tarcocimab and KSI-501 is currently enrolling patients.

Kodiak is also enrolling patients in the phase Ib APEX study, which will evaluate its third investigational candidate, KSI-101, in two new cohorts — cohort 1 in patients with diabetic macular edema and cohort 2 in patients with macular edema secondary to inflammation (MESI). KSI-101 is the company’s novel, potent and high-strength bispecific protein targeting IL-6 and VEGF.

The APEX study will evaluate the safety and tolerability, and identify two dose levels of KSI-101 to progress into late-stage development. The pivotal phase IIb/III studies (PEAK and PINNACLE) will investigate KSI-101 in MESI.

KOD’s Zacks Rank & Stocks to Consider

Kodiak currently carries a Zacks Rank #4 (Sell).

Some better-ranked pharma stocks are Allogene Therapeutics (ALLO - Free Report) , Pfizer (PFE - Free Report) and Novartis (NVS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allogene Therapeutics’ loss estimates per share have narrowed from $1.40 to $1.35 for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.35. ALLO’s shares have lost 23.4% year to date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 9.42%.

Pfizer’s earnings estimates have risen from $2.62 to $2.88 per share for 2024 over the past 60 days, while that for 2025 has increased from $2.85 to $2.92. PFE shares have lost 9.6% year to date.

Pfizer’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 74.50%.

Novartis’ earnings estimates have risen from $7.50 to $7.63 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.29 to $8.38. NVS shares have risen 2.4% year to date.

Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.

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