Kala Pharmaceuticals raises $68m funding to advance eyedrop treatment

The funding was led by Longitude Capital with participation from OrbiMed, Vivo Capital, CAM Capital, RA Capital Management, Wellington Management, Polaris Partners, Lux Capital and CVF LLC.

With the new funding, the company has now raised over $100m since its establishment in 2009.

The company will use the proceeds of the latest financing to advance the confirmatory phase 3 trial for KPI-121 to treat inflammation and pain after cataract surgery.

The proceeds will also be used to progress two parallel phase 3 studies for KPI-121 in dry eye disease, and for general corporate purposes.

If successful in the studies, the company is planning to file new drug applications for each indication in the US in 2017.

KPI-121 is a novel nanoparticle formulation of loteprednol etabonate using Kala’s MPP technology to enhance penetration into target tissues of the eye.

It has been studied in several clinical trials, including 1% and 0.25% formulations to treat post-surgical ocular inflammation and pain and a 0.25% formulation for dry eye and Meibomian gland disease.

Kala is engaged in the development of nanoparticle-based treatments for ocular diseases affecting both front and back of the eye.

The company said its MPP technology has potential applications in women’s reproductive health, respiratory and gastrointestinal diseases, and other indications.