In a recent transaction reported to the Securities and Exchange Commission, Baker Bros. Advisors LP acquired a significant stake in KALA BIO, Inc. (NASDAQ:KALA), a company currently trading at $6.94 with a market capitalization of $32.29 million. The firm purchased a total of 310,559 shares of the company’s common stock on December 30, 2024, at a price of $6.44 per share. This acquisition, valued at approximately $2 million, was executed through a private placement that closed on December 31, 2024. According to InvestingPro analysis, KALA is currently trading below its Fair Value.
Baker Bros. Advisors, a well-known investment firm, serves as the investment adviser to the funds involved in this transaction. The firm, along with its general partner, Baker Bros. Advisors (GP) LLC, has complete discretion and authority over the investment and voting power of the securities held directly by the funds. Julian and Felix Baker, managing members of the general partner, are noted for their substantial roles in the investment decisions. InvestingPro data shows KALA maintains strong liquidity with a current ratio of 2.15, suggesting efficient working capital management.
The shares were acquired by two entities within the Baker Bros. group: 667, L.P. and Baker Brothers Life Sciences, L.P., which purchased 30,620 and 279,939 shares, respectively. This strategic investment in KALA BIO underscores the firm’s confidence in the company’s prospects within the pharmaceutical sector. The stock has shown strong momentum with a 10.1% return over the past week, and its beta of -2.14 indicates it typically moves inversely to the broader market.
In other recent news, Kala Bio has successfully raised $10.75 million through a private placement of common and preferred stock to institutional investors. The funds are set to advance the clinical development of their lead candidate, KPI-012, targeting 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 across over 40 clinical sites, with topline data from the trial anticipated in the second quarter of 2025. Additionally, Kala Pharmaceuticals (NASDAQ:KALA) reported a lower than expected net loss of $9.0 million for the third quarter, which was below the anticipated $10.0 million estimated by H.C. Wainwright. The firm has reaffirmed its Buy rating and $15.00 stock price target for Kala Pharmaceuticals. Furthermore, Kala Pharmaceuticals announced the immediate resignation of board member Mark S. Blumenkranz, M.D., from both the board and its committees. Lastly, Kala has secured another private placement deal led by SR One and ADAR1 Capital Management to raise approximately $12.5 million, further supporting the clinical development of KPI-012.
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