Needham Incrementally Bullish On Cara Therapeutics After CR845 Meets Endpoints

Cara Therapeutics Inc (NASDAQ: CARA) stock spiked 34 percent Wednesday after the company reported that a Phase 2/3 trial for intravenous CR845 met primary and secondary endpoints.

The investor bullishness resonated with Needham. 

The Rating

Needham analyst Alan Carr maintained a Buy rating on Cara and raised the price target from $23 to $28.

The Thesis

Although Cara’s high dose met primary endpoints for pain relief, the low dose missed statistical significance. Nonetheless, the analyst regards the profile of the post-surgery pain reliever, including low addictive qualities and low rates of nausea and vomiting, as “attractive.” (See Carr's track record here.) 

Carr expects Cara will need to complete another Phase 3 trial in post-surgical pain before securing regulatory approval for the candidate, but the positive Phase 2/3 results are seen to reduce program risk.

Needham predicts the follow-up trial will begin in early 2019 with commercial launch in the second half of 2021. It also anticipates Phase 3 trial results for intravenous CR845 in uremic pruritus — an indication seen to be Cara’s strategic priority — in the first half of 2019.

Price Action

Cara shares were trading up 1 percent at $18.24 at the time of publication Thursday morning. 

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