Needham Incrementally Bullish On Cara Therapeutics After CR845 Meets Endpoints

Cara Therapeutics Inc 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. 

Related Links:

Cara Therapeutics Shares Jump On Licensing Deal For Pruritis Treatment

Benzinga's Daily Biotech Pulse: ARMO Skyrockets On Eli Lilly Deal, Akcea Meets FDA Panel, vTv Alzheimer's Trial Results

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorHealth CarePrice TargetReiterationAnalyst RatingsGeneralAlan CarrJoseph StringerNeedham
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!