H.C. Wainwright analyst Yi Chen reiterated a Buy rating on Kala Pharmaceuticals today and set a price target of $12.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Yi Chen’s rating is based on the promising developments in Kala Pharmaceuticals’ clinical trials and the potential market opportunity for their product KPI-012. The completion of patient enrollment in the Phase 2b CHASE trial for treating persistent corneal epithelial defect (PCED) marks a significant milestone, with topline data expected in the third quarter of 2025. This trial is crucial as there is currently no FDA-approved drug for PCED, which affects approximately 100,000 patients in the U.S.
Furthermore, the positive safety data from the high dose KPI-012 in the initial cohort of the Phase 2b trial supports the potential efficacy and safety of the treatment. The ongoing trial could serve as a pivotal study for a Biologics License Application if successful. The valuation of Kala Pharmaceuticals, with a price target of $12 per share, reflects a discounted cash flow analysis and considers both the potential approval and market success of KPI-012. However, risks remain, including clinical trial failure, regulatory challenges, and market competition.