Kodiak Sciences' Eye Drug Zenkuda Succeeds in Late-Stage Diabetic Retinopathy Study
Kodiak Sciences' experimental drug Zenkuda achieved 62.5% response rate in diabetic retinopathy trial with 85% reduction in sight-threatening complications. The company plans to accelerate FDA submission while preparing for wet AMD study readout in Q3 2026. Shares surged 68.6% following the positive late-stage results.
Shares of Kodiak Sciences surged 68.6% to their highest in more than four years after the drug developer's experimental drug met the main goal in a late-stage study in patients with diabetes-related eye damage. The company, valued at $1.39 billion, was testing Zenkuda to treat diabetic retinopathy - an eye complication of diabetes characterized by damaged retinal blood vessels that can lead to leakage, bleeding, and potential vision loss.
In the trial, 62.5% of patients who received Zenkuda achieved at least a two-step improvement on a standard retinopathy severity scale at 48 weeks, compared with 3.3% of those on a sham treatment. Patients also showed an 85% reduction in the risk of developing sight-threatening complications such as progression to proliferative diabetic retinopathy. The drug was well-tolerated, with the study reporting no cases of vision-threatening conditions such as inflammation of blood vessels or the eye.
Zenkuda is designed as a long-acting drug to block a protein linked to harmful blood-vessel growth in the retina. The drug showed consistent efficacy among patients regardless of whether they were taking GLP-1 medications. Kodiak said the results support an application for approval with the U.S. Food and Drug Administration and that it plans to accelerate the submission.
The positive safety data in diabetic retinopathy also de-risks Kodiak's study in wet age-related macular degeneration, which will test both tarcocimab and KSI-501 and is expected to read out in the third quarter. The company has three late-stage programs with Phase 3 topline data expected across 2026, targeting a global anti-VEGF market estimated at roughly $15 billion.
On February 17, 2026, Connecticut-based Braidwell disclosed a new position in Kodiak Sciences, acquiring 2,072,788 shares in a trade estimated at $57.96 million. This new position accounts for 1.85% of Braidwell's 13F reportable AUM at quarter-end. As of February 17, 2026, shares of Kodiak Sciences were priced at $22.66, up 340% over the past year and far outperforming the S&P 500.
Kodiak Sciences develops and advances therapeutics for retinal diseases, with lead candidates including KSI-301 (in Phase IIb/III trials) and preclinical assets KSI-501 and KSI-601. The company ended the third quarter with $72 million in cash and reported a quarterly net loss of $61.5 million, reflecting stepped-up R&D spending tied to active Phase 3 trials. A December $184 million public offering strengthened the balance sheet ahead of those readouts.