Kala Pharmaceuticals' application was accepted by the FDA
Kala Pharmaceuticals Inc (NASDAQ:KALA) is bucking the broader-market trend this afternoon, up 283.2% lead to trade at $15.02. The breakout comes after the U.S. Food and Drug Administration (FDA) accepted the drugmaker's application to start human trials for its treatment for persistent non-healing corneal defect, KPI-012.
Today's gains mark KALA's best single-session percentage pop of all time, though the shares remain well below their March 16 peak of $97. And while the equity is moving away from its recent all-time low of $3.54, Kala Pharmaceutical stock remains down more than 87% in the last 12 months.
Call traders are in a frenzy following the news. The stock's normally nonexistent options pits have already seen 535 bullish bets cross the tape, which is 66 times the intraday average volume. Most popular by far is the April 7.50 call, followed by the 7.50 call in the January series, and new positions are being opened at both contracts.
The success of the trial results could bode well for the security. According to Reuters, the company believes the results could serve as the first of two pivotal trials that could pave the way for a marketing application to the FDA.