KALA BIO Inc's stock surged by 10.71% in pre-market trading, crossing above the 20-day SMA, amid mixed market conditions with the Nasdaq-100 up 0.03% and the S&P 500 down 0.03%.
The significant price movement is attributed to KALA BIO's successful settlement of approximately $10.6 million in debt with Oxford Finance, which enhances the company's financial flexibility and boosts shareholder equity. CEO David E. Lazar emphasized that this milestone allows KALA to pursue future strategies more effectively, reflecting management's confidence in the company's growth trajectory. Additionally, the company granted 400,000 shares of common stock to new hires, aimed at attracting key talent to drive innovation and growth.
This debt resolution not only alleviates financial burdens but also positions KALA BIO for strategic investments and business expansion, which could positively influence investor sentiment and stock performance moving forward.
KALA BIO, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the research, development, and commercialization of therapies for rare and severe diseases of the eye. The Company’s biologics-based investigational therapies utilize its proprietary mesenchymal stem cell secretome (MSC-S) platform. The Company’s product candidate, KPI-012, is a human MSC-S, which contains numerous human-derived biocfactors, such as growth factors, protease inhibitors, matrix proteins and neurotrophic factors that can potentially correct the impaired corneal healing, which is an underlying etiology of multiple severe ocular diseases; KPI-014 specific for inherited retinal degenerative diseases. KPI-012 is in clinical development for the treatment of persistent corneal epithelial defect (PCED), a rare disease of impaired corneal healing. The Company is also engaged in the development of KPI-012 for the treatment of Limbal Stem Cell Deficiency and other rare corneal diseases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
