Last evening, Kodiak Sciences (KOD) priced its 9 mln
share IPO at $10 per share, below the expected $13-$15 range. The stock opened for trading on the Nasdaq earlier today at $10.00.
Based in California, Kodiak Sciences is a clinical stage biopharmaceutical company that specializes in novel therapies aimed at treating chronic, high-prevalence retinal diseases.
The company's lead product candidate -- KSI-301 -- is a biologic therapy designed to maintain potent and effective drug levels in ocular tissue. The company believes that the product candidate has the potential to become a significant therapy method for wet age-related macular degeneration (wet AMD) and diabetic retinopathy. The company owns worldwide rights to the development platform.
The company has used its platform to develop other product candidates, like KSI-501, which is a bispecific anti-IL-6/VEGF bioconjugate. Kodiak Sciences plans to continue developing other product candidates to address high-prevalence ophthalmic diseases.
The company initiated a Phase 1 clinical study of KSI-301 in nine patients in July 2018. All patients enrolled were dosed successfully, reaching the primary safety and tolerability endpoints of the study. Patients have not reported any significant adverse events. The company observed improvements in best corrected visual acuity and reductions in macular thickness at all dose levels. Overall, the study suggests that KSI-301 is biologically active at all dose levels.
The company expects to begin a Phase 2 study of KSI-301 in early 2019. Approximately 400 patients will take part in the randomized study, which will evaluate the impact of different dosing schedules and versus Regneron Pharma’s (REGN) EYLEA (aflibercept). The study will be run in the U.S., and the company also plans to initiate one Phase 2 study in the European Union and two Phase 2 studies in China.
Kodiak Sciences believes its success will depend on the completion of the development of KSI-301 and broadening the use to other conditions. The company also hopes to advance the development of its other product candidates.
The company plans to use $40 mln of IPO proceeds to advance KSI-301 though Phase 2 trials in the U.S. and the European Union in patients with wet age-related macular degeneration. Another $25 mln will be used to advance KSI-301 into Phase 2 clinical trials in China. The company plans to spend $15 mln to advance KSI-301 into global Phase 2 clinical trials in patients with diabetic retinopathy while another $15 mln will be spent on research and development of the company's pipeline. Remaining funds will be used for working capital and other general corporate purposes.
The company has no history of revenue generation. During the six months ended June 30, the company spent $7.23 mln on research and development, down 28.4% from $10.10 mln spent during the first six months of 2017. The company's loss from operations totaled $10.64 mln during the first six months of 2018, an improvement of 9.7% from the $11.79 mln lost during the first six months of 2017.
Kodiak Sciences had $17.64 mln in cash and cash equivalents at the end of the first half of 2018.
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