Kala Pharmaceuticals price target raised to $33 from $15 at Oppenheimer

Oppenheimer analyst Andreas Argyrides raised the firm’s price target on Kala Pharmaceuticals (KALA) to $33 from $15 and keeps an Outperform rating on the shares. Shares of Kala have soared since the summer up +222% vs. +10% XBI in anticipation of the Phase 2b readout of KPI-012 in PCED later this month. The firm sees meaningful upside from positive results that would establish KPI-012 as the only therapy addressing the broad 100,000 PCED market. Oppenheimer sees a high likelihood KPI-12 shows a significant treatment effect based on KPI-012’s multifactorial mechanism that addresses multiple pathways that promote wound healing; promising Phase 1b results that show rapid PCED healing in 6/8 patients; and a carefully executed Phase 2b trial designed to mitigate placebo response. Even with the recent upward move in the stock, the firm is a buyer into strength ahead of the upcoming readout.