Kala Bio Inc. (NASDAQ: KALA) stock is down on Monday after the company halted development of its experimental treatment for a specific eye condition.
The company had a session volume of 14.04 million compared to the average volume of 216.47 thousand, according to data from Benzinga Pro.
On Monday, the company announced that its CHASE Phase 2b trial of KPI-012 for persistent corneal epithelial defect (PCED) did not meet the primary endpoint of complete healing of PCED as measured by corneal fluorescein staining.
A persistent corneal epithelial defect is a non-healing area of the outermost layer of the cornea that fails to heal within the typical two-week timeframe, often due to underlying conditions such as limbal stem cell deficiency, diabetes, or neurotrophic keratopathy.
The CHASE trial also failed to achieve statistical significance for key secondary efficacy endpoints and did not show any meaningful difference between either KPI-012 treatment arm and the placebo arm.
Based on the CHASE trial results, KALA plans to cease development of KPI-012 and its mesenchymal stem cell secretome (MSC-S) platform. KALA plans to evaluate its strategic options and, as part of this evaluation, engage in discussions with its secured lender. In the interim, the company plans to take steps to preserve cash, including by reducing the workforce and implementing other cost-saving measures.
As of June 30, KALA had cash and cash equivalents of $31.9 million. Based on its current plans, KALA anticipates that its cash resources as of June 30, will enable it to fund operations into the first quarter of 2026.
Price Action: KALA stock is down 91.44% at $1.63 at the last check on Monday.
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