KALA BIO Announces $6 Million Securities Purchase Agreement with Investor David E. Lazar

KALA BIO, a clinical-stage biopharmaceutical company focusing on innovative therapies for rare and severe eye diseases, recently announced a strategic investment offer from private investor David E. Lazar. This $6 million securities purchase agreement involves the acquisition of KALA’s non-voting convertible preferred stock by Lazar, with an initial investment of $1.8 million. Additionally, Lazar has assumed the roles of Chief Executive Officer and Chairman of the Board at KALA, effective immediately. Former CEO Todd Bazemore continues to serve on the Board.

KALA’s recent Phase 2b clinical trial of KPI-012 for treating persistent corneal epithelial defect did not meet its primary endpoint, leading to a temporary pause in its development. However, with Lazar’s investment, KALA plans to continue the evaluation and potential reconfiguration of its therapeutic candidates, either as standalone treatments or in combination with other products. This will occur simultaneously with exploring strategic options for the company’s future direction.

David E. Lazar expressed optimism about his investment in KALA, emphasizing a commitment to unlocking value for shareholders through product candidate redevelopment and strategic exploration. KALA’s Board stands in agreement with this vision, citing Lazar’s expertise in capital restructuring and reverse mergers as assets for the company. Together, they aim to identify transformative business opportunities that will drive future growth and success for KALA.

The securities purchase agreement involves two closings, with the first resulting in the issuance of non-voting convertible Series AA preferred stock in exchange for Lazar’s initial investment. The completion of the second closing, consisting of a further $4.2 million investment, is contingent on obtaining stockholder approval at the upcoming meeting in the first quarter of 2026. Upon meeting all necessary closing conditions, KALA will issue additional shares of non-voting convertible Series AAA preferred stock.

KALA BIO, known for its dedication to developing novel treatments utilizing its proprietary mesenchymal stem cell secretome (MSC-S) platform, is focused on addressing rare and severe eye diseases. The lead product candidate, KPI-012, has received Orphan Drug and Fast Track designations from the FDA for treating persistent corneal epithelial defect (PCED).

As the company moves forward with Lazar’s backing, KALA remains committed to advancing its therapeutic pipeline and exploring strategic alternatives under new leadership. This strategic investment marks a pivotal moment for KALA as it navigates the next stage of its development and growth in the biopharmaceutical industry.