Cara Therapeutics Announces Pricing for Secondary Offering
Cara Therapeutics has priced more than 4 million shares of common stock at $18 per share in a secondary offering valued up to around $92 million.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
[cnxvideo id=”625456″ placement=”ros”]Cara Therapeutics Inc. (NASDAQ: CARA) watched its shares slide as the week came to a close after the company reported that it had priced its secondary offering. The company has priced its 4.45 million shares of common stock at $18 per share, with an overallotment option for an additional 667,500 shares. At this price the entire offering is valued up to $92.12 million.
The underwriters for this offering are Piper Jaffray, Stifel, Canaccord Genuity, Needham, Janney Montgomery Scott and H.C. Wainwright.
This is a clinical-stage biopharmaceutical company focused on developing and commercializing new chemical entities designed to alleviate pain and pruritus by selectively targeting kappa opioid receptors. It is developing a novel and proprietary class of product candidates that target the body’s peripheral nervous system and have demonstrated efficacy in clinical trials of patients with moderate-to-severe pain without inducing many of the undesirable side effects typically associated with currently available pain therapeutics.
[nativounit]
Cara’s most advanced product candidate, CR845, is a new chemical entity that is designed to produce pain relief by specifically stimulating kappa, rather than mu, opioid receptors outside of the central nervous system. Intravenous (IV) CR845 has demonstrated significant pain relief and a favorable safety and tolerability profile in three Phase 2 clinical trials in patients with acute postoperative pain.
According to Cara Therapeutics:
The proceeds of the offering are expected to be used to fund the company’s clinical and research development activities, including the completion of the Phase 3 program for I.V. CR845 in uremic pruritus, two Phase 3 trials of I.V. CR845 in acute pain and a Phase 2b trial of oral CR845 in osteoarthritis pain, as well as for working capital and general corporate purposes.
Shares of Cara were last seen down 5% at $17.79 on Friday, with a consensus analyst price target of $25.75 and a 52-week trading range of $4.35 to $20.90.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
