H.C. Wainwright analyst Oren Livnat maintained a Buy rating on Cara Therapeutics (CARA – Research Report) today and set a price target of $2.50.
Oren Livnat has given his Buy rating due to a combination of factors surrounding Cara Therapeutics. Despite recent setbacks, such as the discontinuation of oral difelikefalin (DFK) development in atopic dermatitis (AD) due to insufficient clinical benefits, Livnat maintains optimism for the company’s future prospects. The financial decision to employ a two-stage Phase 3 approach for AD has mitigated potential losses and improved the company’s near-term cash runway, which is forecasted to be around $100M by the end of 2023. This positions Cara with adequate capital to reach upcoming milestones.
The company’s pipeline still includes promising candidates, with expectations of Phase 3 data for oral DFK in other indications, such as non-dialysis dependent chronic kidney disease-associated pruritus (NDD CKD-aP) and notalgia paresthetica (NP) pruritus, by the second half of 2024. Livnat sees significant potential in these indications, especially considering the success of IV Korsuva in similar conditions and the lack of FDA-approved treatments for NP. Although removing AD from revenue projections has led to a reduction in the target price, the anticipated data for NDD CKD-aP and the potential market opportunity for NP support the analyst’s continued Buy rating.
In another report released yesterday, Needham also maintained a Buy rating on the stock with a $6.00 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 Announces Outcome from Dose-Finding Part A of KIND 1 Study Evaluating Oral Difelikefalin for Moderate-to-Severe Pruritus in Patients with Atopic Dermatitis
- Cara shares ‘highly disconnected’ from DFK potential, says H.C. Wainwright
- Cara Therapeutics price target lowered to $11 from $23 at Canaccord
- Cara Therapeutics downgraded to Neutral from Overweight at Piper Sandler
- Cara closes financing transaction with HealthCare Royalty extending cash runway
