Shares of Kodiak Sciences jumped sharply on Thursday, climbing nearly 69% to reach their highest level in over four years after the company announced positive results from a late-stage clinical trial of its experimental eye drug.
The biotech firm, which had a market valuation of approximately $1.39 billion at the previous close, is developing a treatment called Zenkuda for diabetic retinopathy—a serious eye condition caused by damage to blood vessels in the retina that can ultimately lead to vision loss.
According to the company, the study met its primary goal, with 62.5% of patients treated with Zenkuda showing at least a two-step improvement on a widely used disease severity scale after 48 weeks. In contrast, only 3.3% of patients receiving a placebo-like sham treatment showed similar improvement.
The drug also demonstrated strong protective benefits, reducing the risk of severe, vision-threatening complications—such as progression to advanced stages of the disease—by about 85%.
Zenkuda is based on Kodiak’s proprietary antibody-biopolymer conjugate platform, a technology designed to extend drug durability and effectiveness. Analysts believe the successful trial could strengthen confidence in the company’s broader research pipeline.
Anupam Rama noted that the positive outcome may reinforce investor trust in Kodiak’s overall drug development approach.
The company reported that the treatment was well-tolerated, with no cases of serious eye-related side effects such as inflammation or vascular complications observed during the trial.
Designed as a long-acting therapy, Zenkuda works by blocking a protein associated with abnormal blood vessel growth in the retina—a key factor in disease progression.
Importantly, the drug showed consistent effectiveness regardless of whether patients were also using GLP-1 therapies, which are commonly prescribed for diabetes management.
Kodiak plans to move forward with regulatory submission to the U.S. Food and Drug Administration and aims to fast-track the approval process based on these results.
Meanwhile, Michael Yee said the strong safety data in diabetic retinopathy could also reduce uncertainty around Kodiak’s ongoing trials in other eye conditions, including wet age-related macular degeneration. Those studies are expected to deliver results later this year.
