Kodiak Sciences shares climb over 71% after strong late-stage trial results for eye drug Zenkuda

Even as the broader US markets traded in the red on Thursday, 26 March, Kodiak Sciences witnessed a sharp surge in its shares, marking one of its biggest single-day gains in recent years.

The stock, which had already gained traction in pre-market trade, opened with a massive gap-up at $38.95 and extended its rally to hit an intraday high of $38.95 — a stellar 71.2% jump from its previous close of $22.75.

Thursday’s rally also marked the stock’s biggest single-day surge in four years, pushing it to its highest level since February 2022.

What drove the massive rally in Kodiak Sciences shares?

The sharp rise in the stock was driven by the company’s announcement of positive results from a late-stage trial of its treatment for diabetic retinopathy.

Kodiak Sciences has been testing its drug, Zenkuda, for the treatment of diabetic retinopathy—an eye complication caused by diabetes that damages retinal blood vessels and can lead to leakage, bleeding, and potential vision loss.

The company said that 62.5% of patients treated with the therapy achieved a ≥2-step improvement in the diabetic retinopathy severity score, compared with just 3.3% of patients in the sham-treated group.

Zenkuda also demonstrated superiority over the sham treatment, with an 85% reduction in the risk of developing sight-threatening complications, according to the company.

It further added that the drug was well tolerated, with low rates of common ocular adverse events. Notably, no cases of intraocular inflammation, retinal vasculitis, or occlusive retinal vasculitis were reported during the study.

“We now have a multi-indication BLA-ready profile for Zenkuda, and we intend to accelerate our BLA submission plans,” said Dr Victor Perlroth, CEO of Kodiak Sciences.

According to company estimates, approximately 9.7 million people in the US suffer from diabetic retinopathy (DR), a progressive condition that can quickly advance into vision-threatening complications such as proliferative diabetic retinopathy (PDR) or diabetic macular edema (DME).

Kodiak Sciences is a pre-commercial, retina-focused biotechnology company engaged in the research, development, and commercialisation of transformative therapeutics. The company is currently developing a portfolio of three late-stage clinical programmes.

Kodiak Sciences shares surge over 1,000% in under 10 months

The company’s shares have maintained a strong upward momentum in recent months, hitting multi-year highs despite broader market volatility. In March so far, the stock has surged 45.33%, based on today's intraday high.

Over the past 10 months (including March), the stock has closed in the green in nine months, delivering a remarkable 1,045% return and emerging as one of the top-performing stocks during this period.

Although the rally appears impressive, the stock still trades at a steep 77% discount to its all-time high of $171, reached in February 2021. On a yearly basis, the stock has posted positive returns in the past two calendar years, resulting in a cumulative gain of 820%.

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