Bullish indicating open at $55-$60, IPO prices at $37
ARLINGTON, Mass. - KALA BIO, Inc. (NASDAQ:KALA), a biopharmaceutical company focused on developing treatments for rare and severe eye diseases, announced a change in its executive leadership on Monday. The company’s President and Chief Operating Officer, Todd Bazemore, has been named interim CEO following the resignation of former CEO Mark Iwicki. With a market capitalization of $66.27 million, KALA has shown strong momentum, delivering an impressive 84% return over the past six months according to InvestingPro data.
Iwicki, who has led the company since its inception, will continue to contribute to KALA BIO as the Chair of the Board of Directors. This transition occurs as the company anticipates the release of topline data from the Phase 2b clinical trial of its lead product candidate, KPI-012, slated for the second quarter of 2025. InvestingPro analysis reveals the company maintains a healthy current ratio of 2.15, indicating strong short-term liquidity, though it’s currently burning through cash rapidly.
KPI-012, which is currently in clinical development for the treatment of persistent corneal epithelial defect (PCED), leverages KALA’s proprietary mesenchymal stem cell secretome (MSC-S) platform. The therapy has garnered Orphan Drug and Fast Track designations from the U.S. Food and Drug Administration. The stock is currently trading near its 52-week high of $11.20, reflecting investor optimism about the company’s pipeline potential.
Bazemore, who has over three decades of experience in the pharmaceutical industry, has been with KALA BIO since November 2017, initially serving as Chief Operating Officer before taking on the role of President in December 2021. His prior experience includes high-level positions at Santhera Pharmaceuticals (USA), Dyax Corp., and Sunovion Pharmaceuticals, Inc.
In a statement, Iwicki expressed confidence in Bazemore’s capability to lead KALA BIO through its next phase, highlighting the latter’s significant contributions to the company’s progress. Bazemore reiterated the company’s commitment to advancing its MSC-S platform and delivering novel therapies aimed at preserving vision and improving patient outcomes.
The company’s MSC-S platform and KPI-012 are also being explored for potential treatment in other rare corneal diseases and retinal degenerative diseases, such as Retinitis Pigmentosa and Stargardt Disease. While analysts maintain a bullish outlook with a $15 price target, InvestingPro subscribers can access 15 additional investment tips and comprehensive financial metrics to make more informed investment decisions.
This announcement is based on a press release statement from KALA BIO, Inc. The company’s stock is traded on the NASDAQ under the ticker symbol KALA.
In other recent news, Kala Bio has raised $10.75 million through a private placement of common and preferred stock to institutional investors. The proceeds will be used to advance the clinical development of their lead candidate, KPI-012, for persistent corneal epithelial defect (PCED), and for general corporate purposes. The company is currently enrolling patients in the Phase 2b CHASE trial for KPI-012 and expects topline data from the trial in the second quarter of 2025.
Simultaneously, Kala Pharmaceuticals has maintained its Buy rating from H.C. Wainwright, following its third quarter financial report that revealed a net loss of $9.0 million. The firm’s decision was influenced by the ongoing progress of the Phase 2b CHASE trial of KPI-012 for PCED treatment.
These recent developments reflect Kala Bio’s and Kala Pharmaceuticals’ ongoing efforts to address rare and severe eye diseases. They are exploring KPI-012’s potential for treating Limbal Stem Cell Deficiency and conducting preclinical studies for retinal degenerative diseases. The company’s investigational therapies are based on its proprietary mesenchymal stem cell secretome (MSC-S) platform.
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