FDA approves Kala Pharma's eye pain drug

FILE PHOTO: A view shows the U.S. Food and Drug Administration (FDA) headquarters in Silver Spring, Maryland August 14, 2012. REUTERS/Jason Reed/File Photo

(Reuters) - The U.S. Food and Drug Administration on Thursday approved Kala Pharmaceuticals Inc’s treatment for reducing inflammation and pain following an eye surgery.

The company said it expects to launch the drug, Inveltys, in the beginning of 2019, with Wedbush Securities estimating peak sales of about $271 million in 2027.

Inveltys is a corticosteroid administered twice a day, compared with current treatments that require to be applied four times a day.

The drug was found to have no serious side effects during clinical trials, Kala said.

Kala is also developing another drug targeting dry eye disease, and expects to submit a marketing application with the FDA during the second half of the year.

The company’s shares, which gained nearly 4 percent from Wednesday’s close to the approval news, fell 7 percent to $12.57 in afternoon trading.

Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Sriraj Kalluvila