Cara Therapeutics, Inc. (CARA) | Investment Case

1. Company Snapshot

1.a. Company Description

Cara Therapeutics, Inc., an early commercial-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States.The company is developing product candidates that target the body's peripheral nervous system and immune cells.The company's lead product is KORSUVA (difelikefalin) injection for the treatment of moderate-to-severe pruritus associated with chronic kidney disease (CKD) in adults undergoing hemodialysis.

Its product candidate includes Oral KORSUVA (difelikefalin), which has completed Phase II clinical trial to treat pruritus atopic dermatitis and pruritus non-dialysis-dependent chronic kidney disease (NDD-CKD) associated pruritus; and in Phase II clinical trial to treat pruritus chronic liver disease (CLD) primary biliary cholangitis (PBC) and notalgia paresthetica.The company has license agreements with Maruishi Pharmaceutical Co., Ltd to develop, manufacture, and commercialize drug products containing difelikefalin for acute pain and uremic pruritus in Japan; and Chong Kun Dang Pharmaceutical Corporation to develop, manufacture, and commercialize drug products containing difelikefalin in South Korea.Cara Therapeutics, Inc.

was incorporated in 2004 and is based in Stamford, Connecticut.

Show Full description

1.b. Last Insights on CARA

Cara Therapeutics, Inc. has been driven by several positive factors in recent months. The company announced a merger agreement with Tvardi Therapeutics, Inc. on December 18, 2024, creating a Nasdaq-listed, clinical-stage biopharmaceutical company developing novel treatments targeting STAT3 to treat fibrosis-driven diseases. Additionally, Cara Therapeutics completed a 1-for-12 reverse stock split on December 30, 2024, which aims to increase the company's stock price and trading volume. Furthermore, the company partnered with Lenovo and Intel for the "Made By" campaign, featuring a behind-the-scenes miniseries and exclusive live experience with singer-songwriter Alessia Cara. This campaign is expected to bring additional visibility and awareness to the company's brand.

1.c. Company Highlights

Last Price	5.32
Change Percentage	-2.56%
Open	4.8
Previous Close	5.46
Market Cap ( Millions)	8
Volume	236845
Year High	31.32
Year Low	5.28
M A 50	15.21
M A 200	12.8

FCF Yield	-80.54%
Dividend Yield	0.00%
ROE	-115.90%
Debt / Equity	0.82%
Net Debt / EBIDTA	97.01%
Price To Book	1.41
Price Earnings Ratio	-2.81
Price To FCF	-1.24
Price To sales	9.75
EV / EBITDA	-0.83

2. Transcript Summary

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3. NewsRoom

Tvardi Therapeutics Announces Closing of Merger with Cara Therapeutics

Apr -15

Source: globenewswire.com

Cara Therapeutics Announces 1-for-3 Reverse Stock Split in Connection with the Proposed Merger with Tvardi Therapeutics

Apr -14

Source: globenewswire.com

CARA THERAPEUTICS INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Merger of Cara Therapeutics, Inc. - CARA

Jan -07

Source: businesswire.com

Cara Therapeutics Announces Effective Date of 1-for-12 Reverse Stock Split

Dec -27

Source: globenewswire.com

GRAMMY-WINNING ARTIST ALESSIA CARA PARTNERS WITH LENOVO AND INTEL FOR THE "MADE BY" CAMPAIGN, FEATURING A BEHIND-THE-SCENES MINISERIES AND EXCLUSIVE LIVE EXPERIENCE

Dec -19

Source: prnewswire.com

$HAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of VOXX International Corporation - VOXX

Dec -18

Source: prnewswire.com

Shareholder Alert: Ademi LLP Investigates Whether Cara Therapeutics, Inc. Is Obtaining a Fair Price for Its Public Shareholders

Dec -18

Source: businesswire.com

Cara Therapeutics and Tvardi Therapeutics Announce Entry into Merger Agreement

Dec -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.10%)

6. Segments

Difelikefalin-based Product

Expected Growth: 8.1%

The growing prevalence of chronic kidney disease and increasing awareness of pruritus as a debilitating symptom drive demand for effective treatments. Cara Therapeutics' Difelikefalin-based product, a peripherally acting kappa opioid receptor agonist, is poised to capitalize on this trend, offering a novel solution for patients with chronic kidney disease.

7. Detailed Products

Korsuva Injection

A kappa opioid receptor agonist indicated for the treatment of moderate to severe pruritus associated with chronic kidney disease in adults undergoing hemodialysis.

Oral Korsuva

An oral formulation of difelikefalin, a kappa opioid receptor agonist, for the treatment of pruritus in patients with chronic kidney disease.

CR845/difelikefalin

A peripherally acting kappa opioid receptor agonist for the treatment of acute postoperative pain.

CR701

A kappa opioid receptor agonist for the treatment of chronic pain.

8. Cara Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cara Therapeutics, Inc. has a low threat of substitutes due to its unique pipeline of products and lack of direct substitutes in the market.

Bargaining Power Of Customers

Cara Therapeutics, Inc. has a medium bargaining power of customers due to the presence of a few large customers, but the company's products are not highly differentiated.

Bargaining Power Of Suppliers

Cara Therapeutics, Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to switch suppliers if needed.

Threat Of New Entrants

Cara Therapeutics, Inc. has a high threat of new entrants due to the growing demand for its products and the presence of several companies with the capabilities to enter the market.

Intensity Of Rivalry

Cara Therapeutics, Inc. has a medium intensity of rivalry due to the presence of several competitors in the market, but the company's unique products and strong brand recognition help to differentiate it from competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.38%
Debt Cost	3.95%
Equity Weight	60.62%
Equity Cost	7.62%
WACC	6.17%
Leverage	64.95%

11. Quality Control: Cara Therapeutics, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cara Therapeutics

A-Score: 4.1/10

Value: 7.4

Growth: 1.1

Quality: 5.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

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Quality: 3.3

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Quality: 3.6

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Momentum: 0.0

Volatility: 0.7

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Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.08%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.17%

Cara Therapeutics, Inc. - US1407551092

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CARA

1.c. Company Highlights

Lower Growth

Weak Momentum

Medium Volatility

Earnings Miss

Revenues Beats

Cheaper

Revenues Miss

Average Quality

Fairly Valued

Earnings Beats

Lower Quality

More Volatile

Stable Momentum

Strong Momentum

Average Growth

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.10%)

6. Segments

Difelikefalin-based Product

Expected Growth: 8.1%

7. Detailed Products

Korsuva Injection

Oral Korsuva

CR845/difelikefalin

CR701

8. Cara Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cara Therapeutics, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.32$

Current Price

5.32$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA