Kala Pharma Acquires Ocular Surface Disease-Focused Company

Kala Pharmaceuticals Inc KALA has acquired Combangio Inc, a private company developing regenerative biotherapies for severe ocular surface diseases.
Combangio is developing CMB-012, a secretome therapy, to address the complex wound healing process in persistent corneal epithelial defect (PCED) and other severe ocular diseases driven by impaired corneal healing.
Kala plans to submit an investigational new drug application to the FDA and initiate a Phase 2/3 trial of KPI-012 in Q3 of 2022.
Kala will pay $5 million upfront and an aggregate of 7.8 million shares in January.
Combangio equity holders are also entitled to receive up to an aggregate of $105 million in cash and Kala stock upon achieving KPI-012 of specified milestones and tiered royalties sales-based net sales.
Kala posted Q3 sales of $3.10 million, +38% Y/Y, missing the estimate of $5.16 million. Q3 EPS loss of $(0.43) came in line with expectations.
Kala held cash and equivalents of $124.5 million at the end of Q3.
Price Action: KALA shares are up 1.69% at $2.11 during the market session on the last check Monday.