Connecticut-based biotechnology company Cara Therapeutics (NASDAQ:CARA) has announced that it has entered into an agreement with Vifor Fresenius Medical Care Renal Pharma Ltd. on Wednesday.
Vifor Fresenius, a joint company from Vifor Pharma Group (SIX:VIFN) and Fresenius Medical Care (NYSE:FMS), will receive the rights to commercialize Cara Therapeutics KORSUVA (CR845/difelikefalin) injection worldwide, except for in the United States, Japan, and South Korea.
KORSUVA is meant to help treat patients with chronic kidney disease-associated pruritus (CKD-aP) and was given Breakthrough Therapy Designation by the US Food and Drug Administration (FDA). Currently, there are no approved treatment therapies to help with CKD in the US or the European Union
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Vifor Fresenius will be purchasing these rights with a $50 million USD upfront cash payment and through the investment of $20 million, or approximately $17.00 per share, in acquisitions of Cara Therapeutics common stock.
According to Cara Therapeutics President and CEO, Derek Chalmers, Vifor Fresenius “is an ideal partner to bring KORSUVA injection to dialysis patients across Europe and other licensed territories.”
The company plans to enter into a global Phase 3 clinical trial of KORSUVA injection later on in the year and expects data from the studies to help “support filings for regulatory approvals in the U.S. and other markets.”
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COO and President of the Executive Committee of Vifor Pharma, Stefan Schulze, has said that the KORSUVA injection “is a natural fit to [Vifor Fresenius’] leading product portfolio in nephrology, and [they] look forward to making it available to patients who urgently need better therapy.”
As of approximately 1:40 pm EDT, shares of Cara Therapeutics have risen over 30%, reaching just over $15.30 on Wednesday.
The company has already reached a high share value of $15.75 and a low of $13.22.
Comparatively, Cara Therapeutics closed at a share value of $11.60 on Tuesday.
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