Kala Pharmaceuticals (NASDAQ: NASDAQ:) saw its price target adjusted by H.C. Wainwright, with the new target set at $15.00, a decrease from the previous $18.00, while the firm maintained a Buy rating on the stock.
The adjustment, which came on Wednesday, followed Kala Pharmaceuticals’ report of its second-quarter financials for the year 2024, where the company disclosed a net loss of $9.6 million, or ($3.16) per share, which was notably less than the anticipated $12.0 million loss.
The company also highlighted during the announcement that the Phase 2b CHASE trial for its product KPI-012, aimed at treating persistent corneal epithelial defect (PCED), is expected to deliver topline results in the first quarter of 2025.
KPI-012 is recognized for its innovative approach as a mesenchymal stem cell secretome therapy, incorporating a combination of growth factors, protease inhibitors, matrix proteins, and neurotrophic factors designed to target the various underlying causes of PCED.
The positive outlook is further bolstered by the potential for KPI-012 to enter a second pivotal trial in the second half of 2025 if the CHASE trial data are favorable. Beyond PCED, KPI-012 could also be a treatment option for limbal stem cell deficiency (LSCD) and other corneal diseases.
Kala Pharmaceuticals is also developing a second candidate, KPI-014, which is currently in the preclinical stage for inherited retinal degenerative diseases such as retinitis pigmentosa and Stargardt disease.
H.C. Wainwright’s valuation of Kala Pharmaceuticals has risen to $117 million. Based on the assumption of 7.8 million shares outstanding at the end of the second quarter of 2025, the firm’s valuation per share stands at approximately $15.
Kala encountered a decrease in its 12-month price target, which was adjusted from $21 to $18 by H.C. Wainwright. This revision was a response to the company’s first-quarter financial report which revealed a net loss of $11.8 million, surpassing the projected loss of $8.8 million. Despite the larger-than-expected net loss, H.C. Wainwright has maintained a Buy rating on Kala’s stock.
Further developments include the ongoing Phase 2b CHASE trial for KPI-012, a novel therapy for persistent corneal epithelial defect (PCED). The company expects to release topline results by the end of 2024. KPI-012, based on mesenchymal stem cell secretome (MSC-S), holds potential in treating Limbal Stem Cell Deficiency (LSCD) and other corneal diseases, filling a gap as…
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