Jefferies has upgraded Kodiak Sciences Inc. KOD, a biopharmaceutical firm targeted on retinal (eye) illnesses.
Kodiak’s lead investigational medication, tarcocimab, is an anti-VEGF antibody biopolymer conjugate beneath growth for high-prevalence retinal vascular illnesses.
Tarcocimab is at the moment being studied in two Section 3 trials, GLOW2 in diabetic retinopathy and DAYBREAK in sufferers with moist age-related macular degeneration (moist AMD). Each research are actively enrolling sufferers.
Jefferies upgraded Kodiak Sciences from Maintain to Purchase. The analyst writes that Kodiak Sciences is gaining investor curiosity because it enters a pivotal part.
The corporate’s turnaround story for 2025 appears to be like promising, with Section 3 trials in moist AMD progressing properly and displaying robust potential.
Including to the joy, upcoming VEGF/IL-6 information for macular edema secondary to irritation (MESI) (irritation) may open doorways to new indications, enhancing its progress prospects.
Jefferies writes that at $7 per share and a $400 million market cap, the inventory seems undervalued. As Section 3 outcomes method, analysts venture it may climb to $20 or a $1 billion+ market cap. There’s vital upside potential from right here.
The inventory is gaining momentum however stays comparatively undervalued with a ~$400 million market cap and $200 million enterprise worth. Key factors driving optimism embrace:
- Upcoming Section IB Information: Optimistic outcomes from the Section IB trial in MESI are anticipated to spice up the inventory and cut back dangers related to KSI-101. The drug can be on monitor for Section II/III trials.
- Investor Curiosity: Given the enticing valuation, healthcare funds are displaying robust curiosity. The corporate has indicated plans for potential financing in 2025, which may strengthen its steadiness sheet and entice extra capital from distinguished healthcare buyers.
- Section 3 Trials: Two Section 3 research for tarcocimab focusing on moist AMD and diabetic retinopathy are set to be accomplished by the primary half of 2026, including extra catalysts over the following 12-18 months.
With these developments, the inventory has a number of drivers for progress and potential upside.
Kodiak ended the third quarter of 2024 with $197.9 million of money and money equivalents, anticipated to help present and deliberate operations into 2026.
Worth Motion: KOD inventory is up 28.4% at $10.05 ultimately test Monday.
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