Kala Bio announces executive retention bonuses

Published 11/04/2025, 21:24
Kala Bio announces executive retention bonuses

Kala Bio, Inc. (NASDAQ:KALA), a pharmaceutical preparations company based in Arlington, MA with a market capitalization of $22 million, disclosed new retention agreements for key executives in a recent SEC filing. The company’s stock, trading near its 52-week low of $3.37, has declined over 50% year-to-date. On April 10, 2025, the company entered into contracts with several employees, including top management.According to InvestingPro analysis, Kala Bio shows signs of undervaluation despite recent challenges. Subscribers can access 16 additional exclusive insights about the company’s financial health and market position.

The retention agreements involve Todd Bazemore, serving as Interim CEO, President, and COO, Mary Reumuth, CFO, and Kim Brazzell, Ph.D., Head of Research and Development and Chief Medical (TASE:BLWV) Officer. Under these agreements, Bazemore will receive a $281,190 bonus, Reumuth $234,000, and Brazzell $260,000.

These bonuses are contingent on the executives remaining with the company until at least September 30, 2025, or the announcement of the CHASE clinical trial results for KPI-012. Should the executives leave voluntarily or be terminated for cause prior to these dates, they must repay the bonuses in full.

The details of these agreements are outlined in the Form of Retention Agreement, which is attached as an exhibit to the 8-K filing. This financial incentive is designed to retain key leadership during a critical period for the company.

Kala Bio is incorporated in Delaware and trades on the Nasdaq Capital Market under the ticker symbol (NASDAQ:KALA). The company’s focus is on the development of treatments for various diseases through pharmaceutical preparations.

The information provided is based on the company’s 8-K filing with the SEC.

In other recent news, Kala Bio reported its 2024 financial results, revealing a net loss of $38.5 million, or ($10.15) per share, which was slightly better than the anticipated $40.0 million loss. Oppenheimer maintained an Outperform rating for Kala Pharmaceuticals, highlighting the company’s earnings per share of ($1.74), which exceeded both their forecast and the consensus estimate. In a significant leadership change, Kala Bio announced the resignation of CEO Mark Iwicki, with Todd Bazemore stepping in as interim CEO. Bazemore, who has been with the company since 2017, previously served as Chief Operating Officer and President. The company is making progress with its Phase 2b CHASE trial for KPI-012, a treatment for persistent corneal epithelial defect, though a minor setback requires the inclusion of additional patients to meet trial targets. The trial aims for complete healing by Day 56, with topline results expected in the third quarter of 2025. KPI-012 has received Fast Track Designation from the FDA, which could expedite its review process. Both H.C. Wainwright and Oppenheimer have expressed confidence in Kala Bio’s strategic development, maintaining a price target of $15.00.

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