Why Cara Therapeutics Could Rise Another 50%
Cara Therapeutics recently announced data from its late-stage trial in patients with chronic kidney disease. While there was a very positive reaction among investors, one analyst believes that this stock could soar even higher.
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Cara Therapeutics Inc. (NASDAQ: CARA) recently announced data from its late-stage trial in patients with chronic kidney disease (CKD). While there was a very positive reaction among investors, one analyst believes that this stock could soar even higher.
A recent Phase 3 study of Korsuva achieved its primary endpoint of patients achieving a three-point or greater improvement from baseline in the weekly mean of the daily 24-hour Worst Itching Intensity Numeric Rating Scale (WI-NRS) score. At week 12, it was 51%, versus 28% for patients on placebo.
The secondary endpoint saw 39% of patients achieving a four-point or greater improvement from baseline in the weekly mean of the daily 24-hour WI-NRS score at week 12, versus 18% for patients on the placebo.
Janney Capital has a Buy rating on Cara Therapeutics and raised its price target to $33 from $27, implying upside of 53% from the most recent closing price of $21.57. The firm believes that the results move the firm closer to approval and strengthens the likelihood of a strong commercial launch.
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Here’s what the brokerage firm had to say:
An unexpected surprise in today’s data is significant improvement in itch intensity starting at Week 1. This quick onset of action despite some patients still continuing use of anti-itch medication (e.g. antihistamines) in both the Korsuva and placebo arms demonstrates the inadequacy of current treatments and underscores the efficacy of Korsuva. We view the quick onset as a key benefit that is likely to support commercial uptake.
Shares of Cara Therapeutics traded at $21.53 on Thursday, in a 52-week range of $12.19 to $24.30. The consensus price target is $26.20.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
