KOD Stock Cracks September’s Top 5 Biotech Gainers On Eye Drug Win — But ‘Pharma Bro’ Shkreli Says It ‘Still Sucks’

• KOD surged 178% Monday to $89.92, its best day on record and highest close since December 2021.
• Kodiak said its separate eye drugs Zenkuda and KSI-501 met the primary endpoints in the Phase 3 Daybreak trial against the active ingredient in original Eylea.
• Jefferies raised its KOD price target to $112, implying about 25% upside from Monday’s close. LifeSci Capital’s $145 target implies 61% upside, while H.C. Wainwright’s $96 target implies 7%.

Shares of Kodiak Sciences (KOD) broke into September’s top five biotech gainers on a key eye drug win. Still, investor Martin Shkreli questioned whether it can outshine Eylea, Regeneron’s established treatment for wet age-related macular degeneration (AMD).

KOD stock soared 178% on Monday to $89.92, logging its best day on record and closing at its highest level since December 2021. The rally lifted its September gain to 141%, behind only PDS Biotechnology (PDSB), up 258%, and Indaptus Therapeutics (INDP), up 187%, among biotech stocks. 

With PDSB valued at less than $50 million, Kodiak trailed only Indaptus among biotech companies worth more than $100 million. It outperformed GRAIL (GRAL), up 67% this month; Moderna (MRNA), up 41%; and Iovance Biotherapeutics (IOVA), up 35%.

Daybreak Delivers A Double Win For KOD Stock

Kodiak said on Monday that two separate experimental drugs, Zenkuda and KSI-501, met the primary endpoints in its Phase 3 Daybreak trial. Each produced vision gains that were non-inferior to those achieved with 2-milligram Aflibercept, the active ingredient in Regeneron’s (REGN) original Eylea. 

Zenkuda targets VEGF, a protein involved in the abnormal blood vessel growth seen in wet AMD. Kodiak said that 54% of Zenkuda patients reached a 24-week dosing interval at one year under criteria that called for retreatment when retinal fluid appeared. The company also reported no intraocular inflammation in the Zenkuda arm. It plans to file for approval in the fourth quarter using data from five positive Phase 3 studies across three eye conditions. 

KSI-501, also called Tabirafusp-ted, is a different drug. It targets both VEGF and IL-6, a protein associated with inflammation. It met Daybreak’s vision endpoint and a key retinal anatomy endpoint. Kodiak plans further analyses to see whether particular wet AMD patients benefit from the added IL-6 targeting, while a separate Phase 3 trial is studying KSI-501 in diabetic macular edema.

Shkreli Pushes Back On Kodiak’s Win 

Shkreli congratulated Kodiak on meeting both primary endpoints, but called for the numerical vision results against Eylea and pointed to competition from Eylea biosimilars. He had said last week that he was short KOD ahead of the readout and predicted that the stock would fall. 

When another investor praised Zenkuda’s six-month dosing and suggested Kodiak could become a takeover target, Shkreli asked: “How do you know you can’t get the same out of Eylea? presumably vastly cheaper”

In a separate post, he said that “the drug still sucks,” called the formulation change “just an extra loading dose” and argued that Zenkuda’s numerical vision result was worse. He had also questioned whether the formulation changes could improve efficacy. Shkreli’s criticism extended to KSI-501. He argued that its IL-6 targeting offered no benefit beyond Zenkuda’s VEGF targeting. 

The FDA has approved interchangeable biosimilars to original Eylea, adding competition for its 2-milligram formulation. Meanwhile, Regeneron’s separate Eylea HD has an approved dosing interval of up to 20 weeks for eligible wet AMD patients. 

Wall Street Lifts KOD Targets After Daybreak Win

Analysts responded to Daybreak with steep price target increases. Jefferies raised its Kodiak target to $112 from $56, maintained its ‘Buy’ rating and called the Zenkuda outcome a “slam dunk.” It lifted its estimated probability of success to 80% from 65% and its peak sales forecast to $1.8 billion from $400 million.

LifeSci Capital raised its target to $145 from $85 and kept its ‘Outperform’ rating, calling Eylea-like efficacy paired with differentiated durability as a “best-case scenario outcome.” H.C. Wainwright lifted its target to $96 from $58, maintained its ‘Buy’ rating and singled out Zenkuda’s rapid and sustained retinal drying as “highly compelling.”

Evercore ISI said that the initial release “reads excellent,” while seeking more detail beyond the topline announcement. Citi said Kodiak’s data raised the longer-term competitive bar for Regeneron, but pointed to Eylea HD’s broad label, physician familiarity, and momentum with patients.

Based on KOD’s last close, the revised targets imply 25% upside at Jefferies, 61% at LifeSci Capital and 7% at H.C. Wainwright.

How Do Retail Traders Feel About KOD?

On Stocktwits, retail sentiment for KOD jumped to ‘extremely bullish’ from ‘neutral’ levels a week ago amid ‘extremely high’ message volume. Followers for the ticker have also risen 9% in a year, indicating healthy retail interest in the stock. 

One bullish user said, “$KOD My GUESS is an offering at $75 per share to raise $600 million. Probably tomorrow- it takes time to find Daddys with $600 million.”

Another user said, “$KOD This is far superior to eyelea and faricimab.  Take a look at what those drugs are doing annually.”

KOD stock has surged 222% year to date.

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