Analyst Yi Chen from H.C. Wainwright reiterated a Buy rating on Kala Pharmaceuticals (KALA – Research Report) and keeping the price target at $15.00.
Yi Chen’s rating is based on several promising developments at Kala Pharmaceuticals. The company reported a net loss for 2024 that was slightly better than expected, indicating effective financial management. Importantly, the Phase 2b CHASE trial for KPI-012, a novel therapy for persistent corneal epithelial defect (PCED), is progressing well with positive safety data from Cohort 1. This trial could potentially lead to a significant advancement in PCED treatment, as there is currently no FDA-approved drug for all underlying causes of this condition.
Additionally, Kala Pharmaceuticals has extended its cash runway to the first quarter of 2026, supported by a recent private placement that raised $10.75 million. This financial stability, combined with the promising clinical trial developments, underpins the Buy rating. The potential for KPI-012 to address a significant unmet medical need, along with the company’s solid financial footing, positions Kala Pharmaceuticals favorably for future growth.
Chen covers the Healthcare sector, focusing on stocks such as Opko Health, Vivani Medical, and Harrow Health. According to TipRanks, Chen has an average return of -18.1% and a 26.95% success rate on recommended stocks.
In another report released on April 1, Oppenheimer also reiterated a Buy rating on the stock with a $15.00 price target.