Kala Bio and Virotek sign non-binding LOI to expand genetic testing

Kala Bio, Inc. (Nasdaq: KALA) and Virotek Inc. announced they have signed a non-binding letter of intent with an unnamed U.S. DNA testing platform that would resell a selected suite of Virotek's genomic testing products, according to a press release dated Sept. 24, 2026.

The proposed arrangement would extend the companies' existing collaboration beyond ophthalmology into broader genomic testing applications. Commercial and economic terms are still being finalized, and the companies said they expect to name the reselling parties in the coming weeks, assuming negotiations are completed.

The LOI follows an exclusive U.S. distribution and reseller agreement between Kala and Virotek announced on Sept. 3, 2026, under which Kala markets and distributes Virotek's genetic testing and screening program in the United States while Virotek manages laboratory infrastructure, kit supply, specimen processing, and clinical reporting.

Under the proposed arrangement, Kala facilitated the introduction to the potential reseller and would benefit economically if the deal closes through a profit-split or commission-based structure. Virotek would retain responsibility for fulfilling orders, as well as its laboratory processes, clinical reporting, quality standards, and regulatory compliance.

The LOI is non-binding except for certain limited provisions. The companies cautioned that there is no assurance definitive agreements will be reached, that the reselling parties will be named, or that the arrangement will generate revenue. No revenue projections were provided.

"We are still finalizing the economics, and there is no guarantee we complete them," said Avi Minkowitz, Chief Executive Officer of Kala.

"Our priority remains clinical quality, scientific rigor and the responsible delivery of Virotek's testing services," said Dr. Saeid Babaei, Chairman and Chief Executive Officer of Virotek.

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