KOD Stock Soars on Promising Phase III Data for Eye Disease Candidate

Shares of Kodiak Sciences KOD surged 75% on March 26 after the company announced positive top-line results from the phase III GLOW2 study evaluating Zenkuda (tarcocimab tedromer) for the treatment of patients with diabetic retinopathy (DR).

The candidate is an investigational novel anti-VEGF antibody biopolymer conjugate being evaluated for the treatment of retinal vascular diseases.

Background of KOD’s Phase III GLOW2 Study

In 2023, Kodiak rebooted the development program of tarcocimab following positive phase III results from the GLOW1 study, which evaluated the treatment in patients with moderately severe to severe non-proliferative DR. Leveraging the GLOW1 study's success, Kodiak initiated the GLOW2 study to further investigate tarcocimab for DR. The study also expanded the patient population to include individuals with proliferative diabetic retinopathy (PDR) and mild diabetic macular edema (DME), in addition to those with moderately severe to severe DR.

Year to date, Kodiak shares have risen 42.2% compared with the industry’s 1.9% growth.

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More Details on GLOW2 Study

In the GLOW2 study, patients were randomized to receive either Zenkuda or sham injections, administered at extended dosing intervals, with all patients ultimately transitioning to a six-month dosing schedule.

The study met its primary endpoint with high statistical significance. At week 48, 62.5% of the patients treated with Zenkuda achieved more than a two-step improvement in diabetic retinopathy severity score (DRSS) versus 3.3% with sham.

Zenkuda also achieved both the key secondary endpoints. The therapy reduced the risk of developing sight-threatening complications—such as progression to PDR or center-involving DME—by 85% compared with sham through week 48. 13.7% of Zenkuda-treated patients achieved more than a 3-step improvement in DRSS compared with 0% in the control arm, indicating meaningful disease regression.

The study also included patients who were taking GLP-1 therapies. Zenkuda demonstrated consistent efficacy regardless of GLP-1 use, with 60.0% of patients on GLP-1 therapy and 64.3% of those not on GLP-1 therapy achieving more than a two-step improvement in DRSS from baseline to week 48.

Zenkuda was well tolerated, with no reported cases of intraocular inflammation, retinal vasculitis or occlusive retinal vasculitis.

The GLOW2 study confirms Zenkuda’s robust efficacy, durable dosing profile and favorable safety, positioning the therapy as a potentially transformative treatment option across a wide spectrum of diabetic retinopathy patients.

Based on strong safety, efficacy and durability data from GLOW2, Zenkuda has achieved a multi-indication, approval-ready profile, leading Kodiak to accelerate its regulatory submission timeline.

KOD’s Zacks Rank & Stocks to Consider

Kodiak Sciences currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Catalyst Pharmaceuticals CPRX, ADMA Biologics ADMA and Inovio Pharmaceuticals INO. While CPRX sports a Zacks Rank #1 (Strong Buy), ADMA and INO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share (EPS) have risen from $2.55 to $2.78. CPRX shares have gained 24.1% over the past six months.

Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.

Over the past 60 days, estimates for ADMA Biologics’ 2026 EPS have increased from 85 cents to 96 cents. ADMA shares have lost 43.6% over the past six months.

ADMA Biologics’ earnings beat estimates in one of the trailing three quarters, matched once and missed on the remaining occasion, with the average negative surprise being 1.79%.

Over the past 60 days, estimates for Inovio Pharmaceuticals’ 2026 loss per share have narrowed from $1.26 to $1.12. INO shares have plunged 36.5% over the past six months.

Inovio Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 57.94%.

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Catalyst Pharmaceuticals, Inc. (CPRX): Free Stock Analysis Report

Inovio Pharmaceuticals, Inc. (INO): Free Stock Analysis Report

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Kodiak Sciences Inc. (KOD): Free Stock Analysis Report

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