KALA BIO Reports $8.9 Million Net Loss and $2.4 Million Revenue in Q1 2025

KALA BIO, Inc. reported a net loss of $8.9 million for the first quarter of 2025, a decrease from the $11.8 million loss recorded in the same period of 2024. The company's total operating expenses for the quarter were $10.7 million, down from $11.9 million year-over-year. This reduction was primarily driven by lower general and administrative expenses, which fell to $4.6 million from $5.4 million, and a decrease in research and development costs, which amounted to $6.1 million compared to $6.4 million in the prior year. The company’s accumulated deficit as of March 31, 2025, stood at $676.9 million.

In terms of revenue, KALA BIO generated $2.4 million in grant income during the first quarter of 2025, a significant increase from $1.1 million in the same quarter of 2024. This increase was attributed to the achievement of specific milestones under the California Institute for Regenerative Medicine (CIRM) Award, which supports the development of the company's lead product candidate, KPI-012. The company also reported interest income of $0.5 million, consistent with the previous year, while interest expenses decreased to $1.1 million from $1.5 million.

Strategically, KALA BIO is focused on advancing the clinical development of KPI-012, which is currently in a Phase 2b clinical trial for the treatment of persistent corneal epithelial defects (PCED). The company has opened 45 trial sites in the United States and is also expanding its clinical trial efforts into Latin America. The primary endpoint of the CHASE trial is the complete healing of PCED, with topline data expected in the third quarter of 2025. The company has received Orphan Drug and Fast Track designations from the FDA for KPI-012, which positions it favorably for potential market approval.

Operationally, KALA BIO's cash and cash equivalents decreased to $42.2 million as of March 31, 2025, down from $51.2 million at the end of 2024. The company reported net cash used in operating activities of $8.8 million for the first quarter, an improvement from $10.8 million in the same period last year. KALA BIO continues to face substantial doubt about its ability to continue as a going concern, as it expects to incur significant expenses and operating losses in the foreseeable future. The company is actively seeking additional funding through equity or debt financing, collaborations, and licensing arrangements to support its ongoing operations and product development efforts.