CARA stock is on fire as Cara Therapeutics Inc (NASDAQ:CARA) reported positive topline results from a Phase 3 clinical trial, KALM-1, evaluating KORSUVA.
Cara’s KORSUVA Successful
As far as therapeutics companies are concerned, the completion of key milestones with regards to a product is essential for the company’s growth, and Stamford, Connecticut-based Cara Therapeutics announced that the company’s lead candidate has completed a major milestone.
It is believed that following the completion of this milestone, the company’s hopes of getting the United States Food and Drug Administration (FDA) approval for the product has also increased manifold. The product in question is KORSUVA, or CR845, which is aimed at helping people get rid of severe itching problems arising out of hemodialysis and it has emerged that the data in the third Phase of clinical testing has proven to be highly positive.
However, it was a trial test, and the company will be replicating these results when the final Phase III tests are done. If the product passes those tests, then Cara can hope to get the necessary approvals to push KORSUVA into the market.
Following the encouraging results in this trial run, the capital markets reacted positively, and CARA stock went up by as much as 15% to $20.60 in late morning trade on Wednesday.
It is also important to note that Cara Therapeutics has lined up many more clinical trials once KORSUVA is taken over the finishing line. According to an analysis by Jeffries, the success of KORSUVA could open up access to a market worth $500 million for Cara, and the analyst Mark Howerton was particularly positive with regards to his outlook about the company.
The Chief Executive Officer of Cara, Derek Chambers, stated that the company ran an extensive program in order to test KORSUVA. As many as 350 patients were made a part of the study and were run through the 12-week course that is necessary to test the efficiency of the product. Chambers added that patients showed marked improvement after a week.
CARA stock has outperformed the broader market so far in 2019 with a gain of 40%.
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