Kala Bio Signs Exclusive Agreement with Younet AI to Launch Biomedical AI Platform

Kala Bio announced a strategic initiative to build a biotechnology industry dedicated, on-premises artificial intelligence infrastructure platform, designed to be deployed directly within biotech and pharmaceutical client environments, enabling companies across the life sciences sector to unlock additional potential of their proprietary biological data without ever surrendering control of it. The Company also announced that it has entered into a Platform Development and Exclusive License Agreement with 2624465 Ontario, operating as Younet AI, for a proprietary AI research platform, internally designated "Researgency," designed to deploy custom, secure, large language models, or LLMs, purpose-built for biomedical research and data science applications. The Agreement provides KALA with initial platform access during a 12-month initial term and the option, in KALA's sole discretion, to extend the Agreement for successive 12-month renewal terms. The Company's vision is to serve as a dedicated AI infrastructure partner for the biotechnology industry, deploying the Researgency platform directly within each client's own secure environment, on their own servers, under their own control. In this model, KALA would provide the AI platform, the purpose-built biomedical agents, and the ongoing optimization, while the client would retain full ownership and custody of their data at all times. The global AI drug discovery market is projected to grow at a compound annual growth rate approximately 25%, driven by AI's demonstrated ability to compress traditional drug development timelines, which historically average 10 to 15 years and cost up to $2.6B per approved drug, to potentially as little as 12 to 18 months for preclinical candidate nomination, while reducing costs by an estimated 30 to 40 percent. The world's twenty largest pharmaceutical companies collectively invested approximately $167B in research and development in 2024. Researgency is a proprietary biomedical AI research platform licensed to KALA by Younet AI, a specialized artificial intelligence development firm with experience deploying over 100 custom AI agents for enterprise clients across healthcare, technology, and life sciences sectors. The platform is expected to be capable of deploying fully on-premises, secure AI systems that operate independently of any public AI service. The Company expects to report preliminary findings from its internal AI-driven data reassessment during the 12-month initial term, providing investors with tangible evidence of the platform's capabilities prior to external deployment. Under the Agreement, KALA has secured exclusive worldwide license rights to the Researgency platform within the biotechnology field and has received initial platform access to evaluate and demonstrate its capabilities.