Kala downgraded to underweight at JP Morgan on disappointing dry eye launch
Mar. 30, 2022 9:14 AM ETKala Pharmaceuticals, Inc. (KALA)By: Jonathan Block, SA News Editor1 Comment
dardespot/E+ via Getty Images
- JP Morgan has downgraded Kala Pharmaceuticals (NASDAQ:KALA) to underweight from neutral as the firm said that sales of the dry eye treatment Eysuvis (loteprednol etabonate) were below expectations.
- The firm cut its sales expectations in fiscal year 2022 for the eye drops as follows: Q1, $1.9M ($3M prior); FY 2022, $13.3M ($18.7M prior).
- Analyst Christoper Neyor said that the downgrade was "given the significant uncertainty on the revenue trajectory and an extended path to any value inflection."
- He added that he could "get more constructive" on Kala (KALA) stock if Eysuvis sales see a boost and if KPI-012, a phase 1 candidate for persistent corneal epithelial defect, progresses.
- Seeking Alpha's Quant Rarting views Kala (KALA) as a hold.