Cara Therapeutics (CARA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joseph Stringer from Needham remains neutral on the stock and has a $5.00 price target.
Joseph Stringer’s Buy rating for Cara Therapeutics is predicated on a strategic shift within the company, which includes a significant corporate restructuring. The restructuring involves discontinuing a Phase 3 program and reducing the workforce by approximately 50%, a move that strategically extends the company’s financial runway into 2026, beyond the previous projection of the first quarter of 2025. This extension provides Cara Therapeutics with the necessary time to complete the dose-finding portion of the ongoing Phase 2/3 trial for oral Korsuva in Notalgia Paresthetica (NP) and possibly to deliver pivotal trial results by the end of 2025.
Stringer’s recommendation takes into account Cara Therapeutics’ recalibration of focus towards the NP program, which has so far demonstrated the most promising data. By channeling resources towards this program, the company is seen to enhance its chances of success, especially in light of the previous failure in the Atopic Dermatitis program. The financial model has been adjusted to remove the CKD-Pruritus program and to reflect lower operating expense estimates, which justifies the maintained Buy rating despite the lowered price target.
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Cara Therapeutics (CARA) Company Description:
CARA Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the research, development, and commercialization of novel therapeutics. Its portfolio includes opioid-based products, anesthetic-based drugs, and analgesics that targets to alleviate itch and pain. The company was founded by Derek T. Chalmers, Michael E. Lewis, and Frederique Menzaghi on July 2, 2004 and is headquartered in Stamford, CT.
Read More on CARA:
- Cara Therapeutics Prioritizes Late-Stage Notalgia Paresthetica Program and Extends Cash Runway into 2026
- Biotech Alert: Searches spiking for these stocks today
- Cara Therapeutics price target lowered to $2.50 from $7 at H.C. Wainwright
- Cara Therapeutics expects to end 2023 with $100M in cash
- Cara Therapeutics to discontinue clinical program in pruritus associated with AD
