Kodiak Sciences shares fell by more than 45% after the biopharmaceutical company announced that it was discontinuing its tarcocimab program for eye disorders.
The company’s decision comes as its Phase 3 studies for its novel antibody biopolymer conjugate tarcocimab tedromer in patients with diabetic macular edema failed to meet their primary efficacy endpoints.
Additionally, an unexpected increase in cataracts was observed over time in both trials, with the company noting that its initial evaluation suggests this contributed meaningfully to the failure of each study.
A separate study of tarcocimab for wet age-related macular degeneration met its primary endpoint and showed the drug to be safe and well tolerated with a low rate of intraocular inflammation.
Based on the study results, the company said it was assessing if it should continue the development of its second investigational medicine KSI-501 but emphasized that it was yet to come to a final conclusion.
"We recognize the risks inherent to innovative drug development and expect to continue to work towards the goal of translating our capabilities and substantive cash position into value for our stakeholders," Kodiak CEO Dr Victor Perlroth said in a statement.
Kodiak shares were down 46.5% at US$3.90 on Monday afternoon.
Contact the author at emily.jarvie@proactiveinvestors.com
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