Eye Disease Biotech Kala Bio Collapses After Failed Clinical Trial, Lender Takes Control

Kala Bio, a clinical-stage biopharmaceutical company specializing in eye disease treatments, announced its KPI-012 investigational drug failed to meet its primary endpoint in a Phase 2b trial targeting persistent corneal epithelial defect (PCED)24.

The drug did not achieve statistical significance for key secondary efficacy endpoints and showed no meaningful difference between treatment and placebo arms2.

Following the failure, Kala Bio plans to stop development of KPI-012 and its mesenchymal stem cell secretome (MSC-S) platform, and will implement significant cost-saving measures, including a workforce reduction24.

Kala faces imminent dissolution after its secured lender, Oxford Finance, initiated foreclosure proceedings due to a loan default, effectively taking control of the company3.

Kala Bio's stock dropped by approximately 89% after the news broke, reflecting the scale of the negative impact from the failed trial2.

The company, having no clear path forward for its leading candidate, is evaluating strategic alternatives and is likely facing closure13.

Sources:

1. https://insights.citeline.com/scrip/business/start-ups-and-smes/kala-bio-faces-diminishing-options-after-eye-drug-failure-DN4Y6Y6PS5BGLMIDBPBLDDARNA/

2. https://www.investing.com/news/stock-market-news/kala-bio-stock-plunges-after-failed-phase-2b-trial-for-eye-treatment-93CH-4261377

3. https://firstwordpharma.com/story/6376832

4. https://www.marketscreener.com/news/kala-bio-scraps-development-of-eye-disease-drug-after-trial-failure-ce7d5bdbd88af52c