Kala Bio, Inc. (NASDAQ:KALA) has reported a recent transaction involving its Chief Business Officer, Darius Kharabi. According to the latest filing, Kharabi sold 5,158 shares of company stock at an average price of $4.75, totaling approximately $24,500. The transaction was executed on June 26, 2024, and it was made in accordance with a pre-arranged 10b5-1 trading plan.
Investors tracking insider activity may note that the shares were sold at prices ranging from $4.50 to $5.09. The company's filing indicates that the reported price is a weighted average, and further details on the exact number of shares sold at each price point within this range are available upon request from the company, its security holders, or the SEC.
Following the sale, Kharabi's remaining stake in Kala Bio includes 59,728 shares, of which 37,574 are unvested restricted stock units (RSUs). These RSUs are part of the compensation structure for the executive and are typically subject to vesting over a set period, aligning the interests of the executives with those of the shareholders.
The transaction was signed off by Mary Reumuth, Attorney-in-Fact, on June 27, 2024. Kala Bio, headquartered in Arlington, Massachusetts, operates in the pharmaceutical preparations industry and is known for specializing in treatments that address significant unmet needs in ophthalmology.
In other recent news, Kala Pharmaceuticals (NASDAQ:KALA) experienced a reduction in its 12-month price target by H.C. Wainwright, following its first-quarter financial report. The report revealed a net loss of $11.8 million, surpassing the projected loss of $8.8 million. Despite this, the firm maintained a Buy rating on the company's stock. In other developments, Kala Pharmaceuticals' Phase 2b CHASE trial for KPI-012, a treatment for persistent corneal epithelial defect (PCED), is progressing as expected with topline results anticipated by the end of 2024. KPI-012, a therapy based on mesenchymal stem cell secretome (MSC-S), also shows potential applications in treating Limbal Stem Cell Deficiency and other corneal diseases. Additionally, Kala Pharmaceuticals is conducting preclinical studies on KPI-014 for inherited retinal degenerative diseases. However, it is important to note that these are recent developments and further updates are awaited.
InvestingPro Insights
Amidst the recent insider trading activity at Kala Bio, Inc. (NASDAQ:KALA), investors may be looking for additional context to understand the company's financial health and market performance. Kala Bio's Chief Business Officer's transaction coincides with some notable financial metrics and market trends.
InvestingPro data shows that Kala Bio has a market capitalization of $18.39 million, reflecting its size in the pharmaceutical preparations industry. Despite the company's significant return over the last week, with a 19.44% price total return, it has experienced a downward trend over longer periods, with a -57.11% return over the past year. This volatility is also captured in the company's Price % of 52 Week High, which stands at 40.04%, indicating that the stock is trading significantly below its highest price in the past year.
From a valuation standpoint, Kala Bio's P/E Ratio (Adjusted) as of the last twelve months ending Q1 2024 stands at -0.38, highlighting that the company is not currently profitable. This is further supported by the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Additionally, Kala Bio's balance sheet holds more cash than debt, which could be seen as a positive sign of liquidity, as reflected in another InvestingPro Tip. However, it's important to note that the company is quickly burning through cash, which may raise concerns about its long-term financial sustainability.
For those interested in deeper analysis, there are 9 additional InvestingPro Tips available for Kala Bio, including insights into the company's cash flow yield and gross profit margins. To access these valuable insights and to make more informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/KALA.
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