Kala Pharmaceuticals, Inc. (KALA), a biopharmaceutical company, has plunged a decrease of 14.78 percentage points in the pre-market trading session. As a result, the stock was trading at $0.98 when last checked. Kala pharmaceuticals are continuing upon the momentum it gained during Tuesday’s regular trading session when it went berserk and soared by 88.49% to close the day at $1.15. The precipitous decline came after the company announced that EYSUVIS® is covered on UnitedHealthcare Commercial and Cigna Medicare.
EYSUVIS Coverage by UnitedHealthcare
On Tuesday, KALA announced the addition of EYSUVIS on UnitedHealthcare as a covered brand. The coverage would become effective from March 2022. UnitedHealthcare is among the largest commercial healthcare plans in the US. After the coverage from UnitedHealthcare, EYSUVIS would cover 118 million lives, or in percentage terms, 70% of all of the commercial lives.
Addition of EYSUVIS with Cigna Medicare
Alongside that, KALA also announced the addition of EYSUVIS on Cigna Medicare as a preferred brand. The addition became effective from February 2022. The company said that the development would cause the addition of 1.9 million Medicare lives. After the addition, EYSUVIS would have Medicare preferred coverage for select plans with Express Scripts, Cigna, and Prime Therapeutics. EYSUVIS has a total Medicare coverage of 7.1 million lives.
Comments from COO of KALA
Todd Bazemore, President and Chief Operating Officer of KALA, commented on the development that the announcements mark a significant growth on the goal of the company which relates to expansion in access for EYSUVIS for the people who battle dry eye disease. The company is looking forward to the positive engagement with other medical and health plans to execute the goal of provision of broader access of market to EYSUVIS.
What’s Next for KALA Stock?
Looking ahead, analysts are of the view that even though KALA stock holds several positive signals, they are not enough for it to be considered for buying. Hence, at the current level, the stock should be considered a hold candidate while waiting for further developments.