Kodiak Sciences Inc. (NASDAQ: KOD) has begun an underwritten public offering of 6 million shares of its common stock, with an option for underwriters to purchase an additional 900,000 shares at the offering price. The offering is being conducted under a shelf registration statement on Form S‑3, which was declared effective by the SEC on June 2 2023. J.P. Morgan, Jefferies, Evercore ISI and UBS Investment Bank are serving as joint book‑running managers.
The company’s cash balance stood at $72 million as of September 30 2025, a level that supports roughly 1.2 quarters of operating expenses based on a quarterly burn of $61.5 million. The burn rate has accelerated from $43.9 million in Q3 2024, and the cash balance fell from $104.2 million at the end of Q2 2025 to $72 million at the end of Q3 2025, underscoring the urgency of the capital raise.
Proceeds from the offering are earmarked to fund the company’s three late‑stage Phase 3 clinical programs—tarcocimab, KSI‑501 and KSI‑101—and to support ongoing manufacturing and regulatory activities. The allocation is intended to cover the estimated R&D and regulatory costs associated with these programs, which are critical milestones for the company’s future commercialization strategy.
The offering is subject to market conditions and other customary closing conditions. Investors have expressed concern about the dilutive impact of the new shares, a common reaction to equity issuances that increase the total number of outstanding shares. The company’s management has emphasized that the capital raise is essential to sustain the development of its pipeline and to position Kodiak for a potential partnership or acquisition that could provide long‑term financing.
Kodiak is actively pursuing a strategic partnership or acquisition to secure additional financing beyond the equity offering. While the company has not disclosed specific criteria or potential partners, the pursuit of such a deal reflects its intent to strengthen its financial foundation and accelerate progress toward regulatory approval and market entry.
The Phase 3 programs are expected to deliver topline data in 2026 and 2027, a critical period for establishing the company’s competitive position in the retinal vascular disease and macular edema markets. Successful outcomes could significantly enhance Kodiak’s valuation and open the door to commercial revenue streams, while setbacks would extend the runway and increase financial risk.
Overall, the equity offering represents a material financing event that will extend Kodiak’s operational runway and support the execution of its late‑stage clinical agenda. The dilution associated with the new shares is a short‑term trade‑off for the long‑term value that the company aims to create through its pipeline and potential strategic partnership.
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