KALA

• Mark Iwicki reported that in July, Kala completed the sale of EYSUVIS and INVELTYS to Alcon, transitioning global commercialization responsibilities. The focus shifted to the mesenchymal stem cell secretome platform for treating rare eye diseases. - Kim Brazzell discussed that KPI-012 is on track to initiate a Phase II/III clinical trial for persistent corneal epithelial defect in Q4 2022, and plans to expand KPI-021 to partial limbal stem cell deficiency and Sjogren's disease. - Mary Reumuth noted the cash position as of June 30, 2022, and mentioned plans to reduce operating expenses by over 50% compared to the first half of 2022 and 60-70% compared to 2021 for 2023.

• Cash resources, combined with net proceeds from Alcon and planned expense reductions, are expected to fund operations into Q2 2024. - Aim to reduce non-GAAP operating expenses by more than 50% compared to the first half of 2022 and 60-70% compared to 2021 for 2023.

As of June 30, 2022, the cash position was $44.6 million compared to $92.1 million as of December 31, 2021. SG&A expenses for the second quarter of 2022 were $22.7 million, with non-GAAP SG&A expenses at $20.4 million. R&D expenses for the second quarter of 2022 were $4.5 million, consistent with the first quarter.

Q: On pipeline progress for LSCD and Sjogren's preclinically, if still waiting on preclinical data before clinic, and on KPI-012 Phase II/III study and cash runway.

A: Kim Brazzell stated they're doing preparations prior to top line data for KPI-012 Phase II/III, and for LSCD and Sjogren's are still analyzing development pathways. Mary Reumuth said cash resources plus Alcon proceeds will last until Q2 2024, beyond the data readout from KPI-012 Phase II/III trial