Baker Bros. places a $250M bet on a potential rival to Regeneron and Novartis — with a $1B-plus payoff on the line
Kodiak Sciences disappointed plenty of investors when it priced its IPO shares $KOD at $10 a pop, well below the range, last fall. But shares have almost tripled in the meantime, pushing its market cap to $1.1 billion — and setting the stage for a $250 million raise from Baker Bros. to fund a pivotal program for their Eylea rival.
Biotech-focused Baker Bros. Advisors stepped up bearing $225 million to nail a 4.5% royalty stream on KS-301, the big drug at Kodiak. The biotech launched their first pivotal trial — DAZZLE — a couple of months ago. They get $100 million of Baker cash in January, with the rest triggered on a slate of milestones that includes 50% enrollment in the late-stage effort.
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