KALA BIO, Inc. (NASDAQ:KALA) soared 28.3% in premarket trading on Monday after revealing that it has entered into a $6 million securities purchase agreement with private investor David E. Lazar.
The company said it has already received $1.8 million from the first tranche of the two-part investment. As part of the deal, Lazar has taken over as Chief Executive Officer and Chairman of the Board effective immediately. Former CEO Todd Bazemore will continue to serve as a board member.
The investment follows a difficult period for KALA. In September, the company reported that its Phase 2b study of KPI-012 for treating persistent corneal epithelial defect failed to achieve its primary endpoint. Development of the asset was paused while the company conserved cash and reviewed strategic alternatives.
The newly secured funds will allow KALA to keep assessing and potentially reworking its pipeline assets, while simultaneously searching for possible strategic partnerships or transactions. The biotech remains focused on advancing treatments for rare and severe ophthalmic conditions.
“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,” said Lazar, who has extensive experience in capital restructuring and reverse mergers.
The second portion of the investment—worth an additional $4.2 million—will depend on shareholder approval at the next scheduled meeting, anticipated in the first quarter of 2026.