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Kala Pharmaceuticals (KALA) announced that it has entered into a definitive agreement to sell its commercial portfolio and related intellectual property assets to Alcon (ALC). This includes Eysuvis, the first and only FDA approved medicine for the short-term treatment of the signs and symptoms of dry eye disease, and Inveltys, a twice-a-day corticosteroid for the treatment of post-operative inflammation and pain following ocular surgery. Kala plans to focus on developing KPI-012, a novel cell-free secretome therapy that has the potential to address a number of rare and severe ocular diseases. Subject to the submission and clearance of an investigational new drug application for KPI-012, Kala expects to initiate a Phase 2/3 clinical trial of KPI-012 for persistent corneal epithelial defect, or PCED, in the fourth quarter of 2022 and plans to expand its development program for KPI-012 into additional front and back of the eye indications, with additional details forthcoming in the months ahead. Following the closing of the sale of its commercial assets, Kala expects to realize a substantial reduction in operating expenses, which together with the net proceeds from the upfront cash payment received from this transaction, will extend Kala's operating cash runway into the second quarter of 2024, beyond the expected KPI-012 Phase 2/3 data readout. Under the terms of the asset purchase agreement, Kala will receive an upfront payment of $60M and will be eligible to receive commercial-based sales milestone payments. Kala anticipates the transaction will close in the third quarter of 2022, subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.