KALA - Kala downgraded to underweight at JP Morgan on disappointing dry eye launch

JP Morgan has downgraded Kala Pharmaceuticals (NASDAQ:KALA) to underweight from neutral as the firm said that sales of the dry eye treatment Eysuvis (loteprednol etabonate) were below expectations. The firm cut its sales expectations in fiscal year 2022 for the eye drops as follows: Q1, $1.9M ($3M prior); FY 2022, $13.3M ($18.7M prior). Analyst Christoper Neyor said that the downgrade was "given  the significant uncertainty on the revenue trajectory and an extended path to any value inflection." He added that he could "get more constructive" on Kala (KALA) stock if Eysuvis sales see a boost and if KPI-012, a phase 1 candidate for persistent corneal epithelial defect, progresses. Seeking Alpha's Quant Rarting views Kala (KALA) as a hold.

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Kala downgraded to underweight at JP Morgan on disappointing dry eye launch