: Kala Pharmaceuticals stock rockets nearly 300% after FDA OKs IND application for PCED treatment
Shares of Kala Pharmaceuticals Inc. KALA quadrupled in very volatile trading Wednesday, after the biopharmaceutical company said the Food and Drug Administration accepted its investigational new drug (IND) application for KPI-012, its treatment of persistent corneal epithelial defect (PCED). With the acceptance, the company said late Tuesday that it is looking to initiate a Phase 2 trial KPI-012 in the first quarter of 2023. The stock shot up 274.2% in midday trading. Volume spiked to 30.3 million shares, compared with the full-day average of about 118,100 shares. The stock has been halted six times for volatility since the opening bell. Separately, the company said it raised $25 million by selling a total of 43,478 shares of Series E convertible preferred stock at $575.00 a share to “a life sciences-focused investor.” Even with the rally, Kala’s stock has plummeted 75.8% in 2022, while the iShares Biotechnology ETF IBB has lost 16.0% and the S&P 500 SPX has declined 20.4%.
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