Kodiak Sciences stock loses more than three-quarters of its value after disappointing drug trial results

Shares of Kodiak Sciences Inc. plummeted 76.3% to pace all premarket decliners Wednesday, after the biopharmaceutical company said a Phase 2b/3 trial of its treatment for age-related macular degeneration failed to meet its primary efficacy endpoint. The selloff put the stock on track to open at the lowest price seen during regular-session hours since September 2019. The company said its KSI-301 showed "strong durability," and was safe and well tolerated, but it did not meet the primary endpoint of showing "non-inferior visual acuity gains" for those dosed on extended regimens compared with aflibercept given every eight weeks. "We learned that the study design stretched it too far for the roughly 30% of patients who could have benefited from more VEGF inhibition than the minimal every 3 months in the study," said Dr. Carl Regillo, Chief of the Retina Service at Wills Eye Hospital in Philadelphia. The stock had already plunged 48.6% over the past three months through Tuesday, while the iShares Biotechnology ETF has slumped 18.9% and the S&P 500 has lost 8.2%.

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