Kodiak Sciences stock plunges into record-low territory after decision to discontinue wet AMD treatment

Shares of Kodiak Sciences Inc.
KOD,
+2.97%
plummeted 56.9% into record-low territory, and to pace all premarket declines, after the California-based biotechnology company said it decided to discontinue development of wet age-related macular degeneration (AMD) treatment tarcocimab. The decision comes after tarcocimab failed to meet primary efficacy endpoints in two studies of patients on longer treatment intervals, with an unexpected increase in cataracts observed over time. The company said it remains “well financed” with about $379 million in cash and cash equivalents as of June 30, which provides the company with “significant optionality” after winding down tarcocimab. “While we have not come to a final conclusion, we remain committed to our vision and mission of developing transformative therapies for high prevalence diseases,” said Chief Executive Officer Victor Perlroth. The stock, which is on track to open below the May 2 record-low close of $4.30, has gained 1.8% year to date, while the iShares Biotechnology exchange-traded fund
IBB,
+0.93%
has edged up 0.1% and the S&P 500
SPX,
+0.03%
has advanced 18.2%.