KALA - Kala jumps 26% to extend gains after Q4 2022 update

2023-03-06 10:32:51 ET

Following a ~65% rise in the previous session, clinical-stage biotech Kala Pharmaceuticals ( NASDAQ: KALA ) added another ~26% i n the morning hours Monday as Wall Street reacted to the company’s Q4 2022 results.

Highlights of the financials include an enrollment update on its CHASE Phase 2b clinical trial for KPI-012 in patients with the ocular condition persistent corneal epithelial defect (PCED).

“We recently enrolled the first patient in our CHASE Phase 2b clinical trial of KPI-012, potentially the first of two pivotal studies required to support an application for marketing approval in the United States,” Chief Executive Mark Iwicki remarked.

The trial cleared by the FDA in late 2022 is expected to generate topline data in Q1 2024.

Kala ( KALA ) also updated on its liquidity position, which reached $70.5M for cash and cash equivalents as of 2022 year-end marking a ~35% YoY rise thanks mainly to a $31.0M in gross proceeds from a private placement in December.

In Q1 2023, the company has used $10M for debt repayment after generating $11.4M net proceeds from an at-the-market (ATM) offering in January. Kala ( KALA ) assumes its cash resources as of Dec. 31 could allow it to fund operations into Q1 2025.

Read: Seeking Alpha contributor Terry Chrisomalis issued a Strong Buy rating on Kala ( KALA ) in January, citing its therapeutic platform.

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