Cara Therapeutics announces 70% workforce reduction

In a regulatory filing, Cara Therapeutics disclosed that on June 14, the Board of Directors of the company approved a streamlined operating plan exploring strategic alternatives focused on maximizing shareholder value after the company announced its decision to discontinue the clinical program in notalgia paresthetica following the outcome from the dose-finding Part A of the KOURAGE-1 study evaluating the efficacy and safety of oral difelikefalin for moderate-to-severe pruritus in adult patients with NP on June 12. In connection with the streamlined operating plan, the Board of Directors also approved a reduction in the company’s workforce by approximately 70%, which the company expects to substantially complete by June 30. The company anticipates recognizing approximately $2.6M in total charges in connection with the reduction in force, which costs are expected to be substantially recognized in the second and third quarter of 2024. These charges will consist primarily of one-time cash charges for termination benefits. The charges the company expects to incur in connection with this reduction in workforce are subject to a number of assumptions, risks and uncertainties, and actual results may materially differ. The company may also incur other material charges not currently contemplated due to events that may occur as a result of, or associated with, these actions.