10 Hot Biotech Stocks Under $5

8. Kodiak Sciences Inc. (NASDAQ:KOD)

Potential Upside: 127.27%

Number of Hedge Fund Holders: 13

Kodiak Sciences Inc. (NASDAQ:KOD) is advancing in the biotech field by developing long-lasting treatments for retinal diseases. The company’s main candidate, tarcocimab tedromer, uses its Antibody Biopolymer Conjugate (ABC) platform to boost durability and effectiveness against wet age-related macular degeneration (AMD) and diabetic retinopathy. Moreover, Kodiak aims to reduce the frequency of injections, providing patients with a more practical treatment option.

On the financial front, Kodiak Sciences Inc. (NASDAQ:KOD) posted a $43.9 million net loss in Q3 2024, lower than the $50.0 million loss from the previous year. Meanwhile, research and development costs dropped to $31.9 million due to lower manufacturing and trial expenses, though the company continued investing in late-stage programs. G&A expenses also decreased to $14.8 million as part of cost-cutting efforts. Kodiak holds a strong position with $197.9 million in cash, which should fund operations through 2026 and support the company’s clinical work.

Notably, Kodiak Sciences Inc. (NASDAQ:KOD) has just completed enrollment for its GLOW2 Phase 3 trial testing tarcocimab for diabetic retinopathy. With over 250 patients, this study builds on the successful GLOW1 trial and adds an extra loading dose to increase dosing flexibility. If results match previous findings, GLOW2 and the ongoing DAYBREAK Phase 3 trial for wet AMD will support a single Biologics License Application (BLA) covering multiple uses. The company expects GLOW2 results in Q1 2026 and DAYBREAK data in Q2 2026, strengthening its regulatory position.

With several late-stage trials moving toward potential approval, it remains a hot biotech stock, especially for those interested in innovative eye treatments.