Cara Therapeutics: A Strong Buy on Promising Notalgia Paresthetica Treatment

Analyst Oren Livnat of H.C. Wainwright reiterated a Buy rating on Cara Therapeutics (CARA – Research Report), retaining the price target of $3.60.

Oren Livnat has given his Buy rating due to a combination of factors surrounding Cara Therapeutics and its promising developments in the pharmaceutical pipeline. One of the key elements influencing this optimistic outlook is the progress of Cara’s oral difelikefalin (DFK) in treating notalgia paresthetica (NP), a condition with a significant market potential and no FDA-approved therapies currently available. Livnat’s confidence is further bolstered by the impressive results from the Phase 2 proof-of-concept trials which demonstrated a strong efficacy profile for DFK, suggesting a good chance of success in the upcoming pivotal trials.
Additionally, Livnat considers the strategic focus on NP to be a smarter allocation of Cara’s resources, especially given the drug’s mechanism of action that appears to be well-suited for targeting the neuropathic nature of NP itch. The anticipation of the KOURAGE-1 Part A data, expected by late June, could potentially de-risk the investment as it may confirm the optimal dosing and strengthen the case for Phase 3 trials. The projected sales, potential market penetration, and the company’s valuation in relation to its cash position all contribute to the Buy rating, painting a picture of a high reward opportunity with manageable risks.

According to TipRanks, Livnat is a 2-star analyst with an average return of 0.3% and a 42.42% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Tarsus Pharmaceuticals, Avadel Pharmaceuticals, and Jazz Pharmaceuticals.

In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $10.00 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.