Kala Pharmaceuticals stock rockets nearly 300% after FDA OKs IND application for PCED treatment

Shares of Kala Pharmaceuticals Inc.
KALA,
+219.90%
quadrupled in very volatile trading Wednesday, after the biopharmaceutical company said the Food and Drug Administration accepted its investigational new drug (IND) application for KPI-012, its treatment of persistent corneal epithelial defect (PCED). With the acceptance, the company said late Tuesday that it is looking to initiate a Phase 2 trial KPI-012 in the first quarter of 2023. The stock shot up 274.2% in midday trading. Volume spiked to 30.3 million shares, compared with the full-day average of about 118,100 shares. The stock has been halted six times for volatility since the opening bell. Separately, the company said it raised $25 million by selling a total of 43,478 shares of Series E convertible preferred stock at $575.00 a share to “a life sciences-focused investor.” Even with the rally, Kala’s stock has plummeted 75.8% in 2022, while the iShares Biotechnology ETF
IBB,
-0.59%
has lost 16.0% and the S&P 500
SPX,
-0.72%
has declined 20.4%.