H.C. Wainwright downgrades Kala Bio to Neutral after CHASE trial miss

As previously reported, H.C. Wainwright downgraded Kala Bio (KALA) to Neutral from Buy without a price target after KPI-012 failed to meet the primary or secondary endpoints in the Phase 2b CHASE trial for the treatment of persistent corneal epithelial defect. Management decided to cease development of KPI-012 and its mesenchymal stem cell secretome platform based on these results, which were “surprising” after the efficacy demonstrated in the Phase 1b trial was strong, the analyst tells investors.