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On Monday, Oppenheimer analysts assumed coverage of Kala Bio (NASDAQ: KALA) stock with an Outperform rating and a price target of $15.00, representing a significant premium to the current price of $3.75. According to InvestingPro data, the stock has fallen nearly 45% over the past six months, though analysts maintain a bullish consensus with price targets ranging from $12 to $15. The decision follows Kala Bio’s report of a first-quarter bottom-line beat and advancements in its pipeline.
Kala Bio is concentrating on the development of KPI-012 for rare ocular diseases. With a market capitalization of just $24.2 million and current ratio of 1.99, the company is making progress in the Phase 2b trial for treating persistent corneal epithelial defect (PCED), with management expecting a topline readout in the third quarter of 2025. The Phase 1b trial showed complete healing in six out of eight patients, using the same primary endpoint as the ongoing Phase 2b trial.
The company estimates there are approximately 100,000 cases of PCED in the United States, and currently, there are no FDA-approved treatments available. KPI-012 has been granted Fast Track Designation, highlighting its commercial potential.
Oppenheimer recently hosted Kala Bio for a virtual non-deal roadshow, expressing optimism about the upcoming readout. With the latest report, Oppenheimer analysts reiterated their Outperform rating and maintained the $15 price target for Kala Bio stock.
In other recent news, Kala Bio reported a net loss of $8.9 million for the first quarter of 2025, which was slightly better than analysts’ projected loss of $9.6 million. Meanwhile, H.C. Wainwright adjusted its price target for Kala Bio from $15 to $12 while maintaining a Buy rating, reflecting optimism despite the lowered target. Oppenheimer, however, maintained its Outperform rating with a $15 target after a virtual roadshow with the company’s management. The company’s Phase 2b trial of KPI-012 for persistent corneal epithelial defect (PCED) is progressing, with expectations for topline results in the third quarter of 2025.
The trial’s progress includes expanding clinical trial sites into Latin America and enrolling additional patients. Stifel analysts expressed increased optimism about the trial due to positive Phase 1b results, noting the trial’s relatively de-risked status. Furthermore, Kala Bio announced retention bonuses for key executives, contingent on their remaining with the company until the release of the CHASE trial results. These developments underscore the company’s strategic focus on advancing KPI-012, which has been granted Fast Track Designation by the FDA. The anticipated release of trial results is a significant milestone for the company and its stakeholders.
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