Benzinga | Jul 23, 2021 07:33AM EDT

Kodiak Sciences Has Declined $125M Funding From Baker Bros Citing Strong Balance Sheet

* In December 2019, Kodiak Sciences Inc (NASDAQ:KOD) entered into a funding agreement with Baker Bros Advisors LP, wherein Baker Bros agreed to fund up to $225 million in exchange for the right to 4.5% royalties on Kodiak's potential future net sales of KSI-301 and certain other products.

* The royalty was capped at 4.5 times the total amount funded under the Funding Agreement.

* By February 2020, Baker Bros funded $100 million, with the remaining $125 million to be provided after achieving specified criteria.

* At Kodiak's request, Baker Bros acknowledged and confirmed that the second funding amount would not be paid, and the aggregate royalty cap would be reduced from around $1 billion to $450 million.

* The request was made in light of, among other factors, Kodiak's strong balance sheet and its clinical trial progress.

* As of March, the cash balance stood at $929 million.

* Price Action: KOD shares are down 3.8% at $84.77 during the premarket session on the last check Friday.