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KALA BIO director resigns from board and committees

EditorLina Guerrero
Published 09/26/2024, 12:20 AM

KALA
1.48%

KALA BIO, Inc. (NASDAQ:KALA), a pharmaceutical company, announced the immediate resignation of board member and committee participant Mark S. Blumenkranz, M.D., on Monday. The company, which focuses on the development of treatments for eye diseases, stated that Dr. Blumenkranz's departure is not due to any disagreements with the company's operations, policies, or practices.

Dr. Blumenkranz also stepped down from his roles on the company's Audit Committee and Nominating and Corporate Governance Committee. The announcement comes without a named successor to fill the now-vacant positions on the board and its committees.

The news of the resignation was officially filed with the Securities and Exchange Commission (SEC) on Wednesday, September 25, 2024, though the effective date of the resignation was reported as September 23, 2024. KALA BIO, which is incorporated in Delaware and has its principal executive offices in Arlington, MA, has not disclosed further details regarding the reasons behind Dr. Blumenkranz’s resignation or any plans for the transition of his responsibilities.

In other recent news, Kala Pharmaceuticals (NASDAQ:KALA) reported a net loss of $9.6 million for the second quarter of 2024, less than the anticipated $12.0 million loss. H.C. Wainwright adjusted the company's stock target to $15.00, a decrease from the previous $18.00, but maintained a Buy rating.

Concurrently, Kala Pharmaceuticals is advancing the Phase 2b CHASE trial for its innovative product KPI-012, with topline results expected in the first quarter of 2025. The company also announced a private placement deal to raise approximately $12.5 million, with the funding aimed at advancing the clinical development of KPI-012.

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The private placement, led by SR One and including ADAR1 Capital Management, is expected to close subject to customary conditions. Kala Pharmaceuticals is also developing a second candidate, KPI-014, currently in the preclinical stage for inherited retinal degenerative diseases.

InvestingPro Insights


In light of the recent board member resignation at KALA BIO, Inc., investors may be evaluating the company's financial health and market performance more closely. According to InvestingPro data, KALA BIO holds a market capitalization of approximately $25.16 million, with a notably negative price-to-earnings (P/E) ratio of -0.39, reflecting challenges in profitability. Over the last twelve months, the company's operating income was also deeply negative at -$41.25 million, indicating substantial losses in its operations.

InvestingPro Tips suggest that KALA BIO holds more cash than debt on its balance sheet, which could provide some financial flexibility. However, the company is rapidly burning through cash and suffers from weak gross profit margins. Analysts are not optimistic about profitability in the near term, and the stock does not offer a dividend to shareholders. On a brighter note, KALA BIO's liquid assets exceed short-term obligations, and the stock has shown a strong return over the last three months, with a 17.95% price total return.

For investors considering the implications of the recent leadership changes, these financial metrics and InvestingPro Tips provide a snapshot of the company's current financial standing. For a deeper analysis and more tips, which could further inform investment decisions, investors are encouraged to explore the full suite of insights available on InvestingPro. Currently, there are a total of 10 InvestingPro Tips listed for KALA BIO, offering a comprehensive perspective for those seeking detailed investment analysis.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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