Analysts at Berenberg Bank provided their current view on Kodiak Sciences Inc. (NASDAQ:KOD) following the sharp stock fall in late February due to disappointing Phase III study results for KSI-301.

The company reported full 2021-year financial results on March 1 and provided a business update, with operational expenses significantly higher in 2021 due to a 38% increase in staff and ongoing four pivotal clinical studies (GLEAM, GLIMMER, BEACON, and DAYLIGHT). The company exited the year with cash of around $700 million, which the analysts believe is sufficient to run operations for the next 18–24 months.

The analysts were disappointed that KSI-301 failed to show efficacy in pivotal studies. In the pivotal study (DAZZLE), patients were only allowed to receive retreatments every 3/4/5 months, which the analysts believe was insufficient. While the study missed its primary endpoint, Kodiak presented trends favoring KSI-301 in patients who showed efficacy compared to Eylea at 5-month dosing intervals. However, the analysts believe this likely will not be sufficient to support a regulatory filing.