Kala Pharmaceuticals Inc. announced that it has completed the sale of its commercial portfolio and related intellectual property assets to Alcon Inc., a transaction that was first announced in May.
Kala Pharmaceuticals Inc. announced today that it has completed the sale of its commercial portfolio and related intellectual property assets to Alcon Inc., a transaction that was first announced in May.
According to the company, the sale includes Eysuvis, the first and only U.S. Food and Drug Administration approved medicine for the short-term (up to two weeks) treatment of the signs and symptoms of dry eye disease, and Inveltys, a twice-a-day corticosteroid for the treatment of post-operative inflammation and pain following ocular surgery.
The company noted that under terms of the deal, Kala received an upfront payment of $60 million in cash at closing and is eligible to receive commercial-based milestone payments. Kala anticipates that its existing cash resources, together with the net payments received at the closing of the Alcon transaction and planned reductions in operating expenses, will enable it to fund its operations into the second quarter of 2024.
According to Mark Iwicki, chairman and CEO of Kala, the completion of the sale marks a significant transformation of the company, as it pivots its efforts to focus on the advancement of KPI-012, a novel biologic with the potential to improve the treatment of multiple rare ophthalmic conditions.
“As we enter the second half of 2022, we are operating from an enhanced financial position, with sufficient capital to fund our operations beyond the planned data readout from our Phase 2/3 trial of KPI-012 for persistent corneal epithelial defect,” he said in a statement. “We expect to initiate this study in the fourth quarter of 2022, as we continue to pursue our commitment to developing innovative products that can better treat rare, underserved diseases of the eye.’
Piper Sandler acted as exclusive financial advisor and Wilmer Cutler Pickering Hale and Dorr LLP served as legal counsel to Kala.