Kodiak Sciences Surges After ARK Invest Buys the Dip
Cathie Wood's fund adds over 53,000 shares, signaling confidence in the biotech's rebooted retinal disease drug ahead of key 2026 trial data.
Shares of Kodiak Sciences (Nasdaq: KOD) climbed in trading on Friday after Cathie Wood’s ARK Invest disclosed a significant purchase of the clinical-stage biopharmaceutical company, a sign of conviction in its high-stakes turnaround strategy.
According to a daily trade notification from the fund manager, ARK’s Genomic Revolution ETF (ARKG) acquired 53,302 shares of Kodiak. The purchase, valued at approximately $554,000 based on recent trading, underscores a bullish bet on the company's lead drug candidate, which is aimed at treating major causes of blindness.
The investment from the influential, innovation-focused fund marks a notable vote of confidence in Kodiak, which has experienced a dramatic reversal of fortune. The company's future hinges on its main asset, tarcocimab tedromer, a novel antibody therapy for treating retinal vascular diseases like diabetic retinopathy and wet age-related macular degeneration (AMD).
Kodiak's trajectory shifted abruptly in 2023. In July, the company announced that two of its pivotal Phase 3 studies for tarcocimab in diabetic macular edema (DME) failed to meet their primary endpoints. The news triggered a massive sell-off and led the company to announce it was discontinuing the program.
However, the narrative was upended just four months later. In a stunning reversal, Kodiak announced in November 2023 that its Phase 3 GLOW study of tarcocimab in a different condition—moderately severe non-proliferative diabetic retinopathy (NPDR)—had yielded overwhelmingly positive results. The study showed the drug significantly reduced the risk of patients developing sight-threatening complications. Following the strong data, Kodiak rebooted the tarcocimab development program and began re-engaging with regulators.
This comeback story appears to be the core of ARK's investment thesis. By buying into Kodiak now, the fund is positioning itself ahead of critical future catalysts.
Kodiak is now advancing a refreshed pipeline. The company has initiated a new Phase 3 study, GLOW2, for diabetic retinopathy and is enrolling patients in its DAYBREAK study for wet AMD. According to company updates to investors, topline data from these crucial trials is anticipated in early 2026, setting the stage for a potential Biologics License Application (BLA) submission that could bundle multiple retinal disease indications.
The investment from ARKG, which focuses on companies involved in genomics, gene editing, and targeted therapeutics, places Kodiak back on the radar for growth-oriented biotech investors. While the path to regulatory approval is fraught with risk, particularly given the drug's mixed history, a successful outcome for the rebooted tarcocimab program could unlock substantial value for the company, which aims to provide a more durable, long-lasting treatment than current market leaders.