Cara Therapeutics Inc CARA, a biotech company developing non-opioid pain relief drugs, has earned a bullish review from Jefferies.
The Analyst
Analyst Matthew Andrews initiated coverage of Cara with a Buy rating and $30 price target.
The Thesis
Cara's lead program is intravenous Korsuva, which is being tested in chronic kidney disease on hemodialysis-associated pruritis, or CKD-HD-aP, Andrews said in the initiation note. (See his track record here.)
The drug has a promising opportunity given that 180,000 patients in the U.S. suffer from the disease and there is no FDA-approved drug, the analyst said.
Jefferies estimates peak penetration for Korsuva at 27 percent and peak-adjusted U.S. sales of $573 million.
The CR845 Phase 2/3 study for Korsuva met its primary endpoint by reducing the Worst Itch-Numeric Rating Scale, or WI-NRS, by 3.8 points at Week 8 from the baseline relative to a placebo, Andrew said.
Based on the data, the candidate was granted breakthrough therapy designation.
Andrews forecast a high likelihood of success in two similar Phase 3 U.S. and global studies initiated in January and December.
The top-line data from the Phase 3 studies, due in mid-2019, is likely to be Cara's next key catalyst, the analyst said.
A Phase 2/3 study of IV CR845 showed statistically significant pain relief with reduced opioid-related side-effects in post-operative acute pain, according to Jefferies.
The Price Action
Cara shares have jumped about 70 percent year-to-date.
The shares were rallying 2.19 percent to $21.31 at the time of publication Thursday.
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