KALA BIO receives $6M investment, appoints new CEO

KALA BIO, Inc. (NASDAQ: KALA) entered into a $6 million securities purchase agreement with private investor David E. Lazar, the company announced. The clinical-stage biopharmaceutical company received $1.8 million in the first of two planned closings under the agreement.

Lazar has been appointed as the company's Chief Executive Officer and Chairman of the Board, effective immediately. Former CEO Todd Bazemore will continue serving on the board.

The investment follows KALA's September announcement that its CHASE Phase 2b clinical trial of KPI-012 for treating persistent corneal epithelial defect failed to meet its primary endpoint. The trial did not achieve statistical significance for key secondary efficacy endpoints and showed no meaningful difference between treatment arms and placebo.

KALA had temporarily halted development of KPI-012 to preserve cash and explore strategic options. The company now plans to continue evaluating and redeveloping its therapeutic candidates while exploring potential strategic transactions.

The company issued new shares of non-voting convertible Series AA preferred stock for Lazar's initial $1.8 million investment. The second closing of $4.2 million requires stockholder approval at a meeting expected during the first quarter of 2026.

KALA develops therapies for rare and severe eye diseases using its mesenchymal stem cell secretome platform. KPI-012, the company's lead product candidate, received Orphan Drug and Fast Track designations from the FDA for treating persistent corneal epithelial defect.

The information is based on a company press release statement.

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