KALA BIO (KALA)
NASDAQ:KALA
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KALA BIO
(NASDAQ:KALA)
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Rating:40Underperform
Price Target:
$0.50
▼(-19.19% Downside)
Action:DowngradedDate:01/24/26
The score is driven primarily by very weak financial performance (near-zero revenue, large ongoing losses, negative equity, and substantial cash burn). Technicals are also negative with the stock below key moving averages and a negative MACD. Corporate events are mixed—debt overhang reduction helps, but Nasdaq compliance issues materially elevate risk; valuation metrics provide limited support given negative earnings and no dividend.
Positive Factors
Debt overhang eliminated
Settling the ~$10.6M Oxford liability materially reduces near-term creditor pressure and covenant/default risk. This improves financial flexibility and cash flow optionality for financing R&D and clinical programs, making capital structure management and strategic partnerships easier over the medium term.
Negative Factors
Near-zero recurring revenue and heavy cash burn
With essentially no product revenue and persistent ~-$32M TTM operating cash burn, the company lacks an internal cash-generating engine. This structural dependence on external financing increases dilution risk and constrains long-term R&D planning if capital markets tighten or investor appetite wanes.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt overhang eliminated
Settling the ~$10.6M Oxford liability materially reduces near-term creditor pressure and covenant/default risk. This improves financial flexibility and cash flow optionality for financing R&D and clinical programs, making capital structure management and strategic partnerships easier over the medium term.
Read all positive factors
KALA BIO (KALA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$203.14M
Dividend YieldN/A
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)1.85
Revenue GrowthN/A
EPS Growth52.39%
CountryUS
Employees38
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)N/A
Shares Outstanding911,330,200
10 Day Avg. Volume624,022
30 Day Avg. Volume1,940,241
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)3.11
Price to Sales (P/S)0.00
P/FCF Ratio-1.29
Enterprise Value/Market Cap0.07
Enterprise Value/Revenue58.70
Enterprise Value/Gross Profit-1.86K
Enterprise Value/Ebitda-0.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.53
Revenue Forecast (FY)N/A
KALA BIO Business Overview & Revenue Model
Company Description
Kala Bio, Inc. is a biopharmaceutical company. It focuses on the development and commercialization of therapeutics using proprietary nanoparticle-based mucus penetrating particles with an initial focus on the treatment of eye diseases. The company...
How the Company Makes Money
Kala Pharmaceuticals makes money through the commercialization of its proprietary eye care products. The company's revenue model is primarily based on the sales of its FDA-approved drugs, which are marketed and distributed to healthcare providers ...
KALA BIO Financial Statement Overview
Summary
Income Statement
6
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.00K | 0.00 | 0.00 | 3.89M | 11.24M | 6.36M |
| Gross Profit | -8.00K | -259.00K | -303.00K | 1.33M | 7.14M | 3.19M |
| EBITDA | -30.98M | -40.98M | -36.08M | -36.70M | -131.96M | -92.90M |
| Net Income | -35.84M | -38.51M | -42.20M | -44.82M | -142.60M | -104.33M |
Balance Sheet | ||||||
| Total Assets | 25.02M | 55.48M | 55.95M | 86.82M | 139.43M | 221.61M |
| Cash, Cash Equivalents and Short-Term Investments | 21.10M | 51.18M | 50.90M | 70.50M | 92.14M | 153.54M |
| Total Debt | 31.05M | 32.25M | 36.32M | 42.95M | 80.19M | 100.92M |
| Total Liabilities | 33.69M | 43.15M | 48.45M | 67.85M | 122.62M | 121.61M |
| Stockholders Equity | -8.66M | 12.33M | 7.50M | 18.97M | 16.80M | 100.00M |
Cash Flow | ||||||
| Free Cash Flow | -32.09M | -29.59M | -28.54M | -79.22M | -109.12M | -92.64M |
| Operating Cash Flow | -32.03M | -29.38M | -27.93M | -78.91M | -108.23M | -90.69M |
| Investing Cash Flow | -84.00K | -208.00K | -429.00K | 62.72M | 70.80M | -78.21M |
| Financing Cash Flow | 4.01M | 29.88M | 8.51M | -7.94M | 42.55M | 160.63M |
KALA BIO Technical Analysis
Neutral
0.62
Price Trends
0.31
Negative
0.50
Negative
3.67
Negative
Market Momentum
-0.04
Negative
45.61
Neutral
75.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KALA, the sentiment is Neutral. The current price of 0.62 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.31, and below the 200-day MA of 3.67, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 75.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KALA.
KALA BIO Risk Analysis
KALA BIO disclosed 67 risk factors in its most recent earnings report. KALA BIO reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KALA BIO Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $45.11M | -3.67 | -19.05% | ― | -65.77% | 38.61% | |
54 Neutral | $37.04M | -5.64 | -15.64% | ― | -23.60% | -179.33% | |
53 Neutral | $46.66M | -20.99 | -10.54% | ― | 12.21% | 69.91% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $23.73M | -33.14 | 0.27% | ― | 75.19% | ― | |
40 Underperform | $203.14M | -0.36 | -2323.94% | ― | ― | 52.39% |
* Healthcare Sector Average
KALA
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KALA BIO Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder MeetingsStock Split
KALA BIO expands preferred financing and shareholder authorizations
Neutral
Feb 2, 2026
On November 24, 2025, KALA BIO completed the first closing of a private placement under a previously disclosed agreement by issuing 900,000 shares of Series AA Convertible Non-Redeemable Preferred Stock at $2.00 per share, raising $1.8 million and...
Delistings and Listing ChangesRegulatory Filings and Compliance
KALA BIO Receives Nasdaq Notice on Listing Compliance
Negative
Jan 23, 2026
On January 20, 2026, Kala Bio disclosed that it had received a notice from Nasdaq stating that, based on the company’s closing bid prices between December 3, 2025 and January 16, 2026, its shares had traded below the $1.00 minimum required f...
Private Placements and Financing
KALA BIO Launches At-the-Market Equity Offering Program
Neutral
Jan 8, 2026
On January 8, 2026, KALA BIO, Inc. entered into an at-the-market equity offering agreement with H.C. Wainwright Co., allowing the company to issue and sell up to $15 million of its common stock from time to time through Wainwright as sales agent ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
KALA BIO eliminates debt overhang through equity settlements
Positive
Jan 6, 2026
On December 30, 2025, KALA BIO entered into a series of equity-based settlements, agreeing to issue 900,000 common shares to Baker Bros. Advisors to resolve claims over participation rights and securing a six‑month voting proxy over those an...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Kala Bio fully settles loan, strengthens balance sheet
Positive
Jan 2, 2026
On December 26, 2025, Kala Bio, Inc. paid $2 million to Oxford Finance, LLC under a previously disclosed Loan Settlement Agreement linked to prior events of default under a 2021 Loan and Security Agreement involving the company and its subsidiary ...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingShareholder Meetings
KALA BIO Directors Plan Conditional Resignations Tied to Vote
Neutral
Dec 29, 2025
On December 19, 2025, six directors of KALA BIO—Marjan Farid, M.D., Andrew I. Koven, C. Daniel Myers, Todd Bazmore, Mark Iwicki, and Howard B. Rosen—submitted conditional resignations that would become effective immediately after the c...
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
KALA BIO Announces New CEO and Funding Deal
Neutral
Dec 16, 2025
KALA BIO has scheduled its next annual meeting of stockholders for January 30, 2026, with stockholder proposals due by December 27, 2025. The company has entered into a Convertible Loan Agreement and a Securities Purchase Agreement with David Laza...
Business Operations and StrategyPrivate Placements and Financing
KALA BIO Raises $10M in Direct Offering
Neutral
Dec 5, 2025
On December 4, 2025, KALA BIO, Inc. entered into a securities purchase agreement with an institutional investor to issue and sell 900,000 shares of common stock and pre-funded warrants for up to 9,100,000 shares, raising $10 million in a registere...
Executive/Board ChangesPrivate Placements and Financing
KALA BIO Raises $1.8M in Preferred Stock Offering
Positive
Nov 25, 2025
On November 23, 2025, KALA BIO entered into a Securities Purchase Agreement to issue Series AA and Series AAA Convertible Non-Redeemable Preferred Stock, raising up to $6 million. The first closing occurred on November 24, 2025, with $1.8 million ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Kala Pharmaceuticals Faces Nasdaq Compliance Challenge
Negative
Nov 12, 2025
On November 10, 2025, KALA BIO, Inc. received a deficiency letter from Nasdaq indicating non-compliance with the Minimum Market Value of Listed Securities Requirement, as its market value was below $35 million for 30 consecutive business days. The...
Business Operations and StrategyPrivate Placements and Financing
Kala Pharmaceuticals Secures Convertible Loan Amid Challenges
Negative
Nov 10, 2025
On November 9, 2025, Kala Pharmaceuticals entered into a Convertible Loan Agreement with an individual investor for a loan of up to $375,000. The loan will be used to negotiate additional investment transactions and prepare a quarterly report. The...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.