Longitude Capital led a $68 million Series C preferred stock financing in Kala Pharmaceuticals, Inc., which develops ophthalmic products. New investors in the funding included OrbiMed, Vivo Capital and CAM Capital. Existing investors in the funding included RA Capital Management, Wellington Management Company LLP, Polaris Partners, Lux Capital, CVF, LLC and others. Gregory Grunberg, managing director at Longitude Capital, and Chen Yu, managing partner at Vivo Capital, are joining Kala’s board as new board members.
Kala Pharmaceuticals, Inc. (Kala), a developer of innovative ophthalmic products based on its proprietary mucus-penetrating particle (MPP) technology, announced that it has closed a highly oversubscribed $68 million Series C preferred stock financing, led by Longitude Capital. Additional new investors included OrbiMed, Vivo Capital and CAM Capital, who were joined by RA Capital Management, Wellington Management Company LLP, Polaris Partners, Lux Capital, CVF, LLC, and other existing investors.
“This financing provides us with the resources to complete our Phase 3 trials with KPI-121, our novel nanoparticle formulation of loteprednol etabonate, in cataract surgery and dry eye disease, which if successful, will position us to file New Drug Applications for each indication in the U.S. in 2017,” said Mark Iwicki, Chairman and Chief Executive Officer of Kala Pharmaceuticals. “We are grateful for the support of so many blue chip investors who share our conviction that Kala’s MPP enabled medicines can transform the treatment of millions of patients suffering from these conditions.”
The proceeds of the financing will be used to advance the confirmatory Phase 3 trial for KPI-121 for the treatment of inflammation and pain following cataract surgery, two parallel Phase 3 studies for KPI-121 in dry eye disease, and for general corporate purposes.
In conjunction with the financing, Kala added two seats to the company’s Board of Directors. Gregory Grunberg, Managing Director at Longitude Capital, and Chen Yu, Managing Partner at Vivo Capital, joined as new Board members. Rajeev Shah, Managing Director and Portfolio Manager at RA Capital Management, joined the Company’s Board of Directors last year. Jonathan Silverstein, Partner and a Co-Head of Global Private Equity at OrbiMed, will hold a Board observer seat.
“Kala has rapidly transformed into a late-stage ophthalmic company with multiple near-term commercial opportunities for KPI-121,” said Gregory Grunberg. “Kala’s promising pipeline has the potential to address major markets with large unmet needs and the company has the financial strength, the right team, and the experience to drive its programs toward near-term value creation.”
KPI-121 is a novel nanoparticle formulation of loteprednol etabonate utilizing Kala’s proprietary MPP technology to enhance penetration into target tissues of the eye. KPI-121 has been studied in multiple clinical trials, including 1% and 0.25% formulations for the treatment of post-surgical ocular inflammation and pain and a 0.25% formulation for dry eye and Meibomian gland disease.
About Kala Pharmaceuticals, Inc.
Kala is a clinical stage pharmaceutical company focused on innovative nanoparticle-based treatments for ocular diseases affecting both front and back of the eye. Kala leverages its proprietary mucus-penetrating particle (MPP) technology to develop topical ophthalmic formulations with enhanced delivery into ocular tissue by facilitating penetration through the tear film mucus. Beyond ophthalmology, Kala’s MPP technology has potential applications in women’s reproductive health, respiratory and gastrointestinal diseases, and other indications.
Kala was founded by leaders in the fields of nanomedicine and biopharmaceutical engineering, and is backed by leading life sciences investors including Longitude Capital, OrbiMed, Vivo Capital, CAM Capital, RA Capital Management, Polaris Partners, Third Rock Ventures, Lux Capital, CVF, LLC, and Ysios Capital. For more information, please visit Kala’s website at www.kalarx.com.