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On Friday, H.C. Wainwright adjusted its outlook on Kala Pharmaceuticals, Inc. (NASDAQ:KALA), reducing its price target from $15.00 to $12.00, but maintaining a Buy rating on the stock. With the stock currently trading at $4.04, analysts see significant upside potential, with targets ranging from $12 to $15. The adjustment follows Kala Bio’s recent financial report for the first quarter of 2025, in which the company posted a net loss of $8.9 million or ($1.41) per share. This figure is slightly better than the estimated loss of $9.6 million projected by analysts.
Kala Bio’s management has confirmed that their Phase 2b CHASE trial of KPI-012 for treating persistent corneal epithelial defect (PCED) is progressing as planned, with expectations to release topline data in the third quarter of 2025. While InvestingPro data shows the company is quickly burning through cash, it maintains a healthy current ratio of 1.99 and holds more cash than debt on its balance sheet. The company has expanded its clinical trial sites into Latin America and is actively enrolling patients to achieve its goal of 90 evaluable participants. The primary endpoint of the trial is the complete healing of PCED without corneal fluorescein staining on Day 56.
The firm’s estimated market value currently stands at $118 million. With approximately 9.7 million shares outstanding at the end of the first quarter of 2026, the revised price target of $12 is based on this valuation. The reiteration of the Buy rating, despite the lowered price target, reflects the analyst’s continued optimism about the company’s stock.
The CHASE trial’s progress and the company’s effective management of its clinical trial sites emphasize Kala Bio’s ongoing efforts to meet its clinical milestones. The anticipated release of the topline data in the upcoming months will be a significant event for the company and its stakeholders, as it could potentially impact the firm’s valuation and future prospects.
In other recent news, Kala Bio has been the focus of several analyst assessments and corporate announcements. Oppenheimer reaffirmed its Outperform rating on Kala Pharmaceuticals, maintaining a $15 price target, following a virtual non-deal roadshow with the company’s management. This endorsement highlights the company’s progress in its Phase 2b trial of KPI-012 for treating persistent corneal epithelial defect (PCED), a condition with limited treatment options. Additionally, H.C. Wainwright analyst Yi Chen also maintained a Buy rating with a $15 price target, noting Kala Bio’s net loss of $38.5 million for 2024, which was slightly better than the estimated $40 million loss.
Kala Bio’s ongoing Phase 2b CHASE trial of KPI-012 has randomized 87 patients, although 13 patients did not have their PCED diagnosis verified, prompting the need for additional participants. The trial aims to complete enrollment by mid-2025, with results expected later that year. In corporate developments, Kala Bio announced retention bonuses for key executives, including Interim CEO Todd Bazemore, to ensure leadership stability during this critical period. These bonuses are contingent on the executives remaining with the company until the announcement of the trial results or a specified date. Analysts’ continued support, coupled with strategic executive retention, underscores the company’s commitment to advancing its clinical trials and potential market opportunities.
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