Shares of biopharmaceutical company Kodiak Sciences (NASDAQ:KOD) are down nearly 50% at the time of writing today after it announced topline results from three Phase 3 trials, DAYLIGHT, GLEAM, and GLIMMER, of tarcocimab tedromer.
The DAYLIGHT trial evaluated the drug in 557 subjects for the treatment of wet age-related macular degeneration (AMD). In the trial, tarcocimab was observed to be safe and well tolerated and reached the primary endpoint.
The identically designed GLEAM and GLIMMER trials involved 460 and 457 subjects, respectively, for the evaluation of the efficacy, durability, and safety of tarcocimab tedromer for the treatment of diabetic macular edema (DME). Both trials failed to reach their primary efficacy endpoints.
Additionally, an unexpected increase in cataracts was also observed in the studies. Consequently, the company is now discontinuing the further development of tarcocimab. Kodiak had a cash pile of $379 million at the end of June 2023 and is now assessing whether to continue the development of its KSI-501 program in retinal diseases.
Overall, the Street has a $14.50 consensus price target on Kodiak alongside a Hold consensus rating. While this points to a massive ~99% potential upside in the stock, short interest is now inching toward 12%.
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