Kala Pharmaceuticals Shares Jump Nearly 20% on News of IND, Private Placement

By Stephen Nakrosis

Shares of Kala Pharmaceuticals Inc. were trading higher after-hours Monday, after the company said it entered into a definitive agreement for private-placement financing that could generate $31 million, and also submitted an application for an investigational new drug, or IND.

At 5:06 p.m. ET, the company's stock had risen 19.72% to trade at $6.65 per share. The stock had finished the day's regular session with a 1.92% loss, closing at $5.63 per share.

The private-placement deal with a life sciences-focused investor will see Kala sell shares of its common stock and Series E Convertible Non-Redeemable Preferred Stock in two tranches, for gross proceeds of up to $31 million, the company said.

Kala seperately said it has submitted an IND application with the U.S. Food and Drug Administration for KPI-012. The drug aims to treat Persistent Corneal Epithelial Defect, a condition which can lead to vision loss.

Subject to FDA acceptance of the IND, the company said it is on-track to initiate a Phase 2b clinical trial of KPI-012 this quarter.

Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

November 28, 2022 17:24 ET (22:24 GMT)

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