Kala Pharmaceuticals Halts KPI-012 Development After Trial Failure

Kala Pharmaceuticals ( (KALA) ) has shared an update.

On September 28, 2025, KALA BIO, Inc. announced its decision to cease the development of KPI-012 and its mesenchymal stem cell secretome platform following the CHASE Phase 2b clinical trial’s failure to meet primary and secondary efficacy endpoints for treating persistent corneal epithelial defect. Consequently, the company plans to reduce its workforce by approximately 51% and explore strategic options to preserve cash, which includes engaging in discussions with its secured lender.

The most recent analyst rating on (KALA) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Kala Pharmaceuticals stock, see the KALA Stock Forecast page.

Spark’s Take on KALA Stock

According to Spark, TipRanks’ AI Analyst, KALA is a Underperform.

Kala Pharmaceuticals faces significant financial difficulties, marked by declining revenues and heavy reliance on debt, which pose serious risks. The technical analysis reflects a strong downtrend, with the stock being oversold, adding to the negative outlook. Valuation is unattractive due to negative earnings and the lack of a dividend, further weighing down the stock’s appeal.

To see Spark’s full report on KALA stock, click here.

More about Kala Pharmaceuticals

KALA BIO, Inc. is a clinical-stage biopharmaceutical company focused on researching, developing, and commercializing innovative therapies for rare and severe eye diseases. The company’s investigational therapies are based on its proprietary mesenchymal stem cell secretome (MSC-S) platform, with its lead product candidate, KPI-012, aimed at treating persistent corneal epithelial defect (PCED).

Average Trading Volume: 218,508

Technical Sentiment Signal: Buy

Current Market Cap: $133.8M

Learn more about KALA stock on TipRanks’ Stock Analysis page.