Kodiak Sciences (KOD) Surges 25.18% Intraday on Analyst Upgrades, Institutional Buying

Kodiak Sciences (KOD) shares surged to a 25.18% intraday gain on September 25, 2025, marking the highest level since September 2025 and closing with a 1.23% rise to extend its two-day rally to 14.29%. The momentum reflects a confluence of analyst upgrades, clinical progress in its pipeline, and growing institutional confidence in the biotech’s ophthalmology focus.

Barclays upgraded KOD from “Underweight” to “Equalweight” in August, citing positive data from Roche’s BARDENAS trial as indirect validation for Kodiak’s KSI-101, a bispecific antibody targeting macular edema secondary to inflammation (MESI). Jefferies initiated coverage with a “Buy” rating, highlighting the potential of KSI-101 to address a niche market lacking non-steroidal therapies. These moves, alongside similar upgrades from JPMorgan and HC Wainwright, fueled investor optimism ahead of key data readouts in 2026.

Institutional ownership of KOD rose sharply in 2025, with hedge funds and asset managers increasing stakes by over 20% in key quarters. Adage Capital, ICONIQ, and Jacobs Levy expanded positions, pushing institutional ownership to 89.06% by September. This influx underscores confidence in the company’s pipeline, particularly its lead asset tarcocimab (KSI-301), which is nearing Phase III trials for wet AMD, diabetic retinopathy, and retinal vein occlusion. A single Biologics License Application in 2026 could streamline regulatory approval across three indications.

KSI-101’s Phase 1b/2 APEX trial demonstrated rapid retinal drying and vision improvements, positioning it as a potential first-in-class treatment for MESI. Analysts noted its differentiation from corticosteroid-based options, a market segment with high unmet need. Meanwhile, tarcocimab’s development timeline remains pivotal, with top-line data expected in early 2026. The company’s cash runway extends into 2026, though its market cap remains near cash levels, reflecting lingering skepticism about pipeline risks.

Investors are advised to monitor upcoming trials, regulatory updates, and institutional activity as key inflection points. While the stock’s recent rally reflects short-term optimism, long-term risks include clinical setbacks and competition from established players. The focus remains on 2026 data readouts, which could redefine Kodiak’s value proposition in the ophthalmology sector.