H.C. Wainwright holds Kodiak Sciences stock at Neutral, $3 target

On Monday, H.C. Wainwright maintained a Neutral stance on Kodiak Sciences Inc . (NASDAQ:KOD) shares, reasserting a $3.00 price target. Currently trading at $2.91, the stock sits within a wider analyst target range of $2.00 to $20.00, according to InvestingPro data. The firm’s analyst, Matthew Caufield, highlighted the progression of Kodiak’s retinal pipeline, specifically its antibody biopolymer conjugate drug (ABCD) platform. Caufield acknowledged the company’s efforts to move beyond its past challenges with tarcocimab, which included Phase 3 trial failures in Diabetic Macular Edema (DME) and an unexpected increase in cataract adverse events.

Kodiak Sciences had also faced a setback with the Phase 2b/3 DAZZLE trial in wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)). These experiences have informed the development of a modified enhanced formulation for the ABCD platform. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 6.72, though it’s currently burning through cash with negative free cash flow of $147 million over the last twelve months. The analyst expressed cautious optimism that the reformulated tarcocimab and KSI-501 could show promising Phase 3 results in terms of delivery, efficacy, and durability.

The firm noted that Kodiak Sciences has strategically positioned the ABCD platform, with key milestones expected in the Phase 3 GLOW2 trial for diabetic retinopathy (DR) using the enhanced formulation tarcocimab. Additionally, the company is testing tarcocimab in combination with anti-IL-6 and VEGF-trap bispecific antibody biopolymer conjugate KSI-501 in the Phase 3 DAYBREAK trial for wet AMD patients. Furthermore, the unconjugated protein portion of KSI-501, known as KSI-101, is being evaluated in the Phase 1b APEX trial, with Cohort 1 targeting DME and Cohort 2 focusing on macular edema secondary to inflammation (MESI) patients.

Looking ahead, the main opportunities for de-risking the conjugate platform and validating the enhanced formulation are projected to materialize in 2026. Until then, H.C. Wainwright has decided to maintain the current rating and price target for Kodiak Sciences stock. The company’s stock has experienced significant volatility, with a 70% decline year-to-date, though InvestingPro analysis suggests the stock may be undervalued at current levels. For deeper insights into Kodiak’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, which offers expert analysis of key metrics and growth drivers.

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