Education
About Us
Working with TipRanks
Follow Us
Cara Therapeutics (CARA)
NASDAQ:CARA
Top Page
Cara Therapeutics
(NASDAQ:CARA)
44Neutral
Cara Therapeutics (CARA) vs. S&P 500 (SPY)
Market Cap
$22.44M
Dividend YieldN/A
Average Volume (3M)18.25K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth-59.08%
EPS Growth18.99%
CountryUS
Employees55
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-20.99
Shares Outstanding4,571,229
10 Day Avg. Volume14,631
30 Day Avg. Volume18,246
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.59
Price to Cash Flow (P/CF)-0.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Cara Therapeutics Business Overview & Revenue Model
Company DescriptionCara Therapeutics, Inc. is a biopharmaceutical company focused on developing and commercializing new chemical entities designed to alleviate pruritus (itching) and pain by selectively targeting kappa opioid receptors. The company operates within the healthcare sector, specifically in the biotechnology and pharmaceuticals industries. Cara Therapeutics' core product is KORSUVA (difelikefalin) injection, which is developed for the treatment of pruritus associated with chronic kidney disease in patients undergoing hemodialysis.
How the Company Makes MoneyCara Therapeutics generates revenue primarily through the commercialization of its lead product, KORSUVA injection. The company earns money by selling this product to healthcare providers and institutions treating patients with chronic kidney disease on dialysis who experience pruritus. Additionally, Cara Therapeutics has entered into strategic partnerships and licensing agreements with other pharmaceutical companies to expand the distribution and commercialization of KORSUVA in various markets outside the United States, which contributes to its revenue through milestone payments and royalties. The company's financial performance is significantly influenced by regulatory approvals, market acceptance of its product, and the ability to successfully expand its distribution network.
Cara Therapeutics Financial Statement Overview
Summary
Cara Therapeutics is facing significant financial challenges. The income statement indicates high operational losses with a deeply negative net profit margin and a drastic revenue decline. The balance sheet shows high leverage and potential solvency issues. Additionally, negative cash flows raise sustainability concerns.Income Statement
Cara Therapeutics' TTM income statement shows a challenging financial situation. The company has experienced a drastic decline in both revenue and profit margins. The TTM gross profit margin is 84.44%, which is relatively strong, yet the net profit margin is deeply negative at -109.96%, indicating high operational losses. The company has also witnessed a significant revenue decline of 58.56% from the previous year. High negative EBIT and EBITDA margins further highlight operational inefficiencies and challenges in achieving profitability.32
Negative
Balance Sheet
The balance sheet indicates high leverage with a concerning debt-to-equity ratio of 4.83. The equity has been significantly reduced, leading to a low equity ratio of 1.38%. This reflects high financial risk and potential solvency issues. The return on equity is also negative, showing a lack of returns for shareholders. Despite these issues, the company maintains some liquidity with cash reserves exceeding its current debt obligations.40
Negative
Cash Flow
Cara Therapeutics is facing cash flow challenges, with negative operating cash flow and free cash flow. The free cash flow growth rate has shown improvement from -94453000 to -77342000. The operating cash flow to net income ratio is poor at 0.78, reflecting difficulties in converting income into cash flow. The free cash flow to net income ratio is negative, indicating inefficiencies in cash flow management and sustainability concerns.28
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.69M | 20.97M | 41.87M | 23.03M | 135.08M | 19.89M | Gross Profit |
| 7.33M | 14.79M | 34.60M | 21.47M | 28.01M | -93.28M | EBIT |
| -82.07M | -121.50M | -87.53M | -89.08M | 5.38M | -111.68M | EBITDA |
| -88.80M | -117.65M | -83.80M | -88.19M | 5.59M | -111.48M | Net Income Common Stockholders |
| -95.53M | -118.51M | -83.41M | -88.19M | 8.41M | -106.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 161.38M | 100.76M | 145.40M | 167.03M | 180.93M | 155.01M | Total Assets |
| 190.82M | 125.84M | 182.24M | 247.06M | 271.16M | 232.96M | Total Debt |
| 0.00 | 43.17M | 1.92M | 3.67M | 5.28M | 4.32M | Net Debt |
| -15.08M | -8.61M | -61.82M | -9.78M | -26.41M | -13.99M | Total Liabilities |
| 57.19M | 68.76M | 23.46M | 19.53M | 22.16M | 46.25M | Stockholders Equity |
| 133.63M | 57.09M | 158.78M | 227.52M | 249.00M | 186.71M |
| Cash Flow | Free Cash Flow | ||||
| -77.34M | -94.45M | -78.77M | -60.13M | -5.84M | -109.24M | Operating Cash Flow |
| -74.24M | -92.08M | -78.73M | -60.09M | -5.49M | -109.22M | Investing Cash Flow |
| 13.54M | 43.46M | 128.71M | -4.75M | -20.27M | -30.52M | Financing Cash Flow |
| 34.49M | 38.15M | 311.00K | 46.61M | 39.14M | 142.60M |
Cara Therapeutics Technical Analysis
Positive
4.91
Price Trends
4.97
Positive
4.28
Positive
4.35
Positive
Market Momentum
-0.02
Negative
55.73
Neutral
81.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARA, the sentiment is Positive. The current price of 4.91 is below the 20-day moving average (MA) of 4.97, below the 50-day MA of 4.97, and above the 200-day MA of 4.35, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CARA.
Cara Therapeutics Risk Analysis
Cara Therapeutics disclosed 52 risk factors in its most recent earnings report. Cara Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cara Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.87B | 12.64 | 38.89% | ― | 31.85% | ― | |
77 Outperform | $13.74B | 32.75 | 8.05% | ― | 17.35% | 151.40% | |
68 Neutral | $11.05B | 33.69 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $128.40B | ― | -3.15% | ― | 11.64% | -114.72% | |
55 Neutral | $309.22M | ― | -100.88% | ― | -77.06% | -705.82% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
44 Neutral | $22.44M | ― | -221.25% | ― | -59.08% | 18.99% |
* Healthcare Sector Average
Performance Comparison
CARA
Cara Therapeutics
5.12
-5.44
-51.52%
ACAD
ACADIA Pharmaceuticals
17.19
-2.79
-13.96%
BMRN
BioMarin Pharmaceutical
70.49
-14.69
-17.25%
NBIX
Neurocrine
107.22
-30.52
-22.16%
VRTX
Vertex Pharmaceuticals
488.34
75.89
18.40%
AMLX
Amylyx Pharmaceuticals Inc
3.73
0.29
8.43%
Cara Therapeutics Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -2.00% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strategic focus on a promising NP program with potential for significant clinical and commercial success. However, challenges with KORSUVA revenue and increased R&D expenses were notable concerns.Highlights
Focus on Notalgia Paresthetica
Cara Therapeutics has prioritized its program focusing on oral difelikefalin for notalgia paresthetica (NP), a chronic neuropathic condition with a significant unmet need. This strategic focus extends their cash runway into 2026.
Successful Phase II Study for NP
Phase II proof-of-concept study for oral difelikefalin showed statistically significant results in reducing itch in NP patients, with rapid enrollment in the Phase II/III COURAGE I study.
Strong Demand Growth for KORSUVA Injection
KORSUVA injection saw a 22% increase in demand quarter-to-quarter, reflecting its clinical benefit.
Financial Strategy Enhancements
Cara completed a financing transaction with Healthcare Royalty, bringing forward the value of ex-U.S. and Japan royalties in a nondilutive manner, strengthening their balance sheet.
Lowlights
Challenges with KORSUVA Revenue
Despite demand growth, unfavorable reimbursement changes are expected to significantly restrict access to KORSUVA, leading to minimal revenue contributions.
Increased R&D Expenses
Research and development expenses increased to $28.4 million in Q4 2023, primarily due to clinical trial costs for late-stage development programs.
Decreased Cash Reserves
Cash, cash equivalents, and marketable securities decreased significantly from $156.7 million in 2022 to $1.8 million at the end of 2023, largely due to operating activities.
Company Guidance
In the earnings call for Cara Therapeutics, the company provided guidance focused on the development of oral difelikefalin for notalgia paresthetica (NP), prioritizing this program to extend their cash runway into 2026. They reported significant demand growth for KORSUVA injection, with a 22% increase in vial shipments in Q4 2023, although future revenue from KORSUVA is not expected to be substantial due to reimbursement changes. The company highlighted that 34 million U.S. adults suffer from chronic pruritus, with 650,000 diagnosed NP patients, noting the lack of approved therapies and the significant unmet need for effective treatment. The Phase II/III COURAGE I study for NP has completed enrollment ahead of schedule, with top-line results anticipated in Q3 2024. Financially, Cara reported $3 million in revenue for Q4 2023 and ended the year with $1.8 million in cash, cash equivalents, and marketable securities, after using $92.1 million in operating activities and securing $36.5 million from a financing transaction.Cara Therapeutics Corporate Events
M&A TransactionsBusiness Operations and Strategy
Cara Therapeutics Announces Merger with Tvardi Therapeutics
Positive
Jan 21, 2025
On December 17, 2024, Cara Therapeutics entered into a merger agreement with Tvardi Therapeutics, where Tvardi will become a wholly-owned subsidiary of Cara. This strategic merger aims to advance the development of Tvardi’s therapies for fibrosis-driven diseases and is expected to close in the first half of 2025. The combined entity will be renamed Tvardi Therapeutics, Inc., and will trade under the Nasdaq symbol TVRD. The merger is anticipated to enhance the company’s market positioning by focusing on unmet needs in treating diseases like idiopathic pulmonary fibrosis and hepatocellular carcinoma, with expected clinical trial data in the second half of 2025.
Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Cara Therapeutics Merges with Tvardi Therapeutics for STAT3 Focus
Neutral
Dec 18, 2024
Cara Therapeutics has entered into a merger agreement with Tvardi Therapeutics to form a new Nasdaq-listed company focusing on developing STAT3 inhibitors to treat fibrosis-driven diseases. This strategic merger includes significant changes in leadership and ownership, with Tvardi’s executives leading the combined company and its investors holding a majority stake, and is expected to provide the necessary funding to advance clinical trials and product development efforts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.