Investment to support the continued evaluation and redevelopment of KALA's product candidates and patent portfolio, and provide working capital and funding for a potential future strategic transaction
ARLINGTON, Mass., Dec. 01, 2025 (GLOBE NEWSWIRE) — KALA BIO, Inc. (NASDAQ: KALA), a clinical-stage biopharmaceutical company dedicated to the research, development and commercialization of innovative therapies for rare and severe diseases of the eye, announces it has entered into a $6 million securities purchase agreement with private investor David E. Lazar for the purchase of the Company's non-voting convertible preferred stock. KALA received $1.8 million in the first of two closings under the agreement. Effective immediately, Mr. Lazar has been appointed KALA's Chief Executive Officer and Chairman of the Board. Former Chief Executive Officer Todd Bazemore continues to serve on the Board.
On September 29, 2025, KALA announced that its CHASE Phase 2b clinical trial of KPI-012 for the treatment of persistent corneal epithelial defect ("PCED") did not meet the primary endpoint of complete healing of PCED as measured by corneal fluorescein staining. The trial also failed to achieve statistical significance for key secondary efficacy endpoints and did not show any meaningful difference between either KPI-012 treatment arm and the placebo arm. KALA had temporarily ceased development of KPI-012 to preserve cash and explore strategic options, but following the investment by Mr. Lazar, KALA plans to continue evaluating and redeveloping its therapeutic candidates for other standalone uses or in conjunction with other therapeutic candidates or products while simultaneously exploring a potential strategic transaction.
"In making this significant investment in KALA, I look forward to continuing to evaluate and redevelop the Company's product candidates while actively exploring strategic opportunities to drive value for our stockholders. I appreciate the KALA Board's unanimous support for this transaction and faith in my ability and proven track record to build upon the Company's foundation and introduce new strategic alternatives."
— David Lazar
"David brings to KALA significant capital restructuring and reverse merger expertise, and I look forward to working with him to evaluate and redevelop the Company's product candidates and identify business opportunities and strategic alternatives that could be transformative for KALA. Following our Board's careful review of strategic options, we view this transaction with Mr. Lazar as the best path forward for our stockholders."
— Todd Bazemore, Former CEO
In conjunction with the securities purchase agreement's first closing, KALA has issued new shares of non-voting convertible Series AA preferred stock in exchange for Mr. Lazar's initial investment of $1.8 million. Completion of the investment transaction and the second closing are contingent on obtaining stockholder approval at the next meeting of stockholders, which is expected to be held during the first quarter of 2026. Following stockholder approval and upon meeting certain other closing conditions, KALA will issue new shares of non-voting convertible Series AAA preferred stock with the second closing investment of $4.2 million.
KALA is a clinical-stage biopharmaceutical company dedicated to the research, development, and commercialization of innovative therapies for rare and severe diseases of the eye. KALA's biologics-based investigational therapies utilize KALA's proprietary mesenchymal stem cell secretome (MSC-S) platform. KALA's lead product candidate, KPI-012, is a human MSC-S, which contains numerous human-derived biofactors, such as growth factors, protease inhibitors, matrix proteins, and neurotrophic factors. KPI-012 received Orphan Drug and Fast Track designations from the U.S. Food and Drug Administration for the treatment of persistent corneal epithelial defect (PCED), a rare disease of impaired corneal healing.
David Lazar — Chief Executive Officer and Chairman of the Board
[email protected]