H.C. Wainwright’s Corey Davis expressed optimism regarding Cara Therapeutics Inc CARA's CR845, which could be one of the first kappa opioid receptor agonists that does not enter the central nervous system and therefore has potential to treat peripheral pain without leading to addiction.
Davis initiated coverage of the company with a Buy rating and price target of $20.
Ideal Pain Treatment
The analyst mentioned that drug companies have been attempting to create the “perfect pain treatment” for decades now and Cara Therapeutics’ CR845 could come close to being the ideal product.
“Cara now has shown impressive proof of concept data, but the real clincher should come from the readout of three ongoing Phase 2/3 studies expected in the 1H 2017,” Davis stated.
Differentiated Drug
What differentiates this drug candidate is that it does not cross the blood-brain barrier and activates kappa opioid receptors rather than mu opioid receptors and therefore has the capacity to control pain and inflammation.
Since it does not have the addictive properties of mu opioids, such as morphine, it is likely to be, at worst, a Schedule V drug.
“Although there are myriad pain drugs, '845 has clear differentiation with a well-validated target and existing proof of concept data, IP protection at least through 2032, and the only kappa we are aware of in active development for pain,” the analyst noted.
Cara was seen up 5.16 percent at $7.95 in Thursday's pre-market.
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