Kala Pharmaceuticals stock rockets nearly 300%

Kala Pharmaceuticals stock rockets nearly 300%

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Kala Pharmaceuticals stock rockets nearly 300% after FDA OKs IND application for PCED treatment

Image Source: Unplash.com

Shares of Kala Pharmaceuticals Inc. KALA, 220.66% quadrupled in very volatile trading Wednesday,

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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, -0.61% has lost 16.0% and the S&P 500 SPX, -0.72% has declined 20.4%.