08:51 AM EDT, 09/29/2025 (MT Newswires) -- KALA BIO ( KALA ) said Monday that it will cease development of its drug candidate KPI-012 as a potential treatment for persistent corneal epithelial defect after it failed to meet its primary endpoint of complete healing in a phase 2b clinical trial.

KPI-012 also failed to achieve statistical significance for key secondary efficacy endpoints in the trial and did not show any meaningful difference compared with a placebo, the company said.

The company said it plans to evaluate its strategic options and engage in discussions with its creditors, while preserving cash, including a reduction in workforce.

Shares of the company were down 95% in recent premarket activity.