Kodiak Sciences News: Why KOD Stock Is Rocketing 64% Higher

Kodiak Sciences (NASDAQ:KOD) news for Monday about it selling royalty rights has KOD stock heading higher.

Kodiak Sciences News: Why KOD Stock Is Rocketing 64% Higher

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A Kodiak Sciences news release notes that the company plans to sell capped royalty rights on global net sales of KSI-301. That cap is sitting at 4.5% of net sales. KOD will be selling these rights for $225 million to Baker Bros. Advisors.

The Kodiak Sciences new release notes that the payment for the royalty rights will be split. This will have the first payment coming at the close of the deal and it will be for $100 million. Following this, KOD will receive the remaining $125 million after reaching 50% enrollment in its two planned pivotal clinical studies of KSI-301 in patients with retinal vein occlusion. The company expects this to occur in late 2020.

Victor Perlroth, MD, Chairman and CEO of Kodiak Sciences, says this about the KOD stock news.

“In thinking through how best to finance our accelerating clinical, manufacturing and commercial plans for KSI-301 and our ABC platform, royalty funding is meaningfully less dilutive than equity and preserves both our future financing and strategic flexibility.”

Another part of the deal includes a possible public offering of KOD stock. This segment notes that if a public offering takes place on or before June 30, 2020, KOD will work to make sure that the underwriters allow Baker Bros. Advisors to participate. This covers up to 25% of shares offered in the offering plus additional shares equal to $25 million.

KOD stock was up 63.75% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/12/kodiak-sciences-news-sends-kod-stock-up/.

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