A biotechnology company firmly on the radar is Cara Therapeutics (NASDAQ:CARA). The US-based drug developer was recently successful in its trialing of lead candidate Korsuva. At the end of May, CARA stock popped as the first of two pivotal studies came back yielding great results.
Here’s what we know.
CARA Stock Reacts to Korsuva Trial
First off, investors need to understand what Korsuva aims to treat. Chronic kidney disease affects approximately 14% of Americans, with nearly 119,000 losing kidney function annually. A result of this is that a vast number of patients are put on dialysis. Unfortunately, up to half of these suffer long bouts of persistent itching sensations called pruritus. Those suffering from pruritus often go on to have sleepless nights and bad skin infections, which slows recovery and speeds up kidney decline.
But Korsuva aims to numb or dull pruritus symptoms. And in CARA’s first trial—the Kalm-1 trial—51% of patients given Korsuva “achieved a three-point or better improvement to their worst itch intensity scores compared to just 28% of those in the placebo group.”
For whom the drug worked, the itching sensations associated with pruritus was significantly lessened.
With the trial a success, CARA stock soared almost 20% following the results.
Now, with a market cap of $847.5 million and shares selling for $21.30, investors will want to know what’s next. One optimistic sign is that Wall Street analysts believe Cara’s valuation could jump over 31% in the next 12 months.
The company will continue trials of intravenous formulations of Korsuva, along with an oral version of the drug due later in the year.
If the late-stage studies for Korsuva go well, then Cara Therapeutics could be on the way to annual sales of more than $500 million. It would also mark the first FDA-approved treatment for chronic liver disease-associated pruritus.
Keep an eye on CARA stock in the coming months; this could be one biotech firm on the verge of breaking out.
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