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KalVista (KALV) Stock Continues to Decline: Here's Why

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KalVista Pharmaceuticals, Inc. (KALV - Free Report) faced a major setback when it decided to terminate the phase II KOMPLETE study evaluating its investigational oral plasma kallikrein inhibitor, KVD824, for the prophylactic treatment of hereditary angioedema (HAE) earlier this week.

The KOMPLETE study was evaluating KVD824 for the prevention of attacks in adults with HAE.

The company decided to terminate the study based on the observation of liver enzyme (ALT/AST) elevations in several patients across all treatment groups. None of the patients in the study had a concomitant elevation of bilirubin levels and all were asymptomatic.

Shares of KALV crashed on the abovementioned news. The stock has declined 61.1% so far this year compared with the industry’s decrease of 26.2%.

Zacks Investment Research
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This apart, KalVista is also developing sebetralstat (formerly KVD900) for treating patients with acute HAE attacks.

The company is currently enrolling patients in the phase III KONFIDENT study, which is investigating sebetralstat as an oral on-demand treatment for acute HAE attacks. Data from the same is expected in the second half of 2023.

Per the company, sebetralstat is a compound from KVD824 and no treatment-related liver enzyme elevations have been observed in any of the clinical studies on sebetralstat.

KalVista has also completed a phase II study on another candidate, KVD001, for the treatment of diabetic macular edema.

We note that KalVista currently has no approved products in its portfolio. Hence, in the absence of a marketed drug, pipeline development remains in key focus for the company. However, similar pipeline setbacks could hurt the stock in the days ahead.

Zacks Rank & Stocks to Consider

KalVista currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are Infinity Pharmaceuticals, Inc. (INFI - Free Report) , Phio Pharmaceuticals Corp. (PHIO - Free Report) and Calithera Biosciences, Inc. (CALA - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Estimates for Infinity Pharmaceuticals’ loss per share have narrowed 11.5% for 2022 and 13.3% for 2023 in the past 60 days.

Earnings of Infinity Pharmaceuticals surpassed estimates in each of the trailing four quarters. INFI delivered an earnings surprise of 7.14%, on average.

Estimates for Phio Pharmaceuticals’ earnings per share have increased 40.4% for 2022 and 13% for 2023 in the past 60 days.

Earnings of Phio Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. PHIO delivered an earnings surprise of 21.32%, on average.

Estimates for Calithera Biosciences’ loss per share have narrowed 37.3% for 2022 and 39.8% for 2023 in the past 60 days.

Earnings of Calithera Biosciences surpassed estimates in three of the trailing four quarters and missed on the other occasion. CALA delivered an earnings surprise of 21.08%, on average.

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