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Kala Bio, Inc. (NASDAQ:KALA), currently trading at $11.22 with a market capitalization of $78.78 million, announced the appointment of Todd Bazemore as Chief Executive Officer, effective August 29, 2025, according to a statement filed with the Securities and Exchange Commission. The company’s stock has shown remarkable strength, delivering a 92% return over the past year. InvestingPro analysis reveals 14 additional key insights about the company’s performance and outlook. Bazemore, age 55, will continue to serve as President and has ceased his role as Chief Operating Officer. He was also elected as a Class II director on the company’s board, serving until the 2025 Annual Meeting of Stockholders or until a successor is appointed.
Bazemore has been serving as interim CEO since February 2025 and has held the roles of President since December 2021 and Chief Operating Officer since November 2017. His appointment comes at a critical time for Kala Bio, which maintains a healthy liquidity position with a current ratio of 2.1, though InvestingPro data indicates the company is currently burning through cash reserves. His previous experience includes executive positions at Santhera Pharmaceuticals (USA) Inc., Dyax Corp., and Sunovion Pharmaceuticals, Inc. He has also served on the board of Pulmatrix Inc. since October 2020.
On August 29, the company amended Bazemore’s employment agreement, setting his annual base salary at $655,000 and establishing eligibility for an annual incentive bonus targeted at 60% of his base salary, as determined by the board. The amendment also adjusts severance benefits in the event of termination without cause or for good reason within 24 months following a change of control. Under such circumstances, Bazemore would receive a lump sum payment equal to 24 months of base salary, any unpaid prior-year bonus, a pro-rated bonus for the year of termination based on company performance, and 200% of his target bonus for that year. He is also entitled to 24 months of COBRA health coverage and outplacement services.
Additionally, Bazemore received a stock option to purchase up to 180,000 shares of Kala Bio common stock at the closing price on the date of grant. The option vests over four years, with one forty-eighth of the shares vesting monthly, contingent on continued service. The stock currently trades near its 52-week high of $11.68, with analyst targets ranging from $12 to $25 per share. According to InvestingPro Fair Value analysis, the stock appears to be trading above its intrinsic value.
The company stated there are no arrangements or understandings with other parties regarding Bazemore’s appointment, and he has no family relationships with other officers or directors. The information is based on a press release statement filed with the SEC.
In other recent news, Kala Bio has completed patient enrollment for its Phase 2b clinical trial of KPI-012, aimed at treating persistent corneal epithelial defects. The trial is designed to evaluate the safety and efficacy of the treatment, with topline data anticipated in the third quarter of 2025. Additionally, Oppenheimer analysts have assumed coverage of Kala Bio with an Outperform rating and a price target of $15.00. This rating comes after the company reported a first-quarter bottom-line beat and noted progress in its pipeline. The ongoing clinical trial for KPI-012 follows promising results from a Phase 1b trial, where six out of eight patients experienced complete healing. The company continues to focus on developing treatments for rare ocular diseases. These developments reflect Kala Bio’s ongoing efforts in advancing its clinical programs.
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