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Cara Therapeutic (CARA)

Upturn stock ratingUpturn stock rating
$0.41
Delayed price
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PASS
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Upturn Advisory Summary

12/19/2024: CARA (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type Stock
Historic Profit -53.54%
Avg. Invested days 24
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 12/19/2024

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 22.86M USD
Price to earnings Ratio -
1Y Target Price 12
Price to earnings Ratio -
1Y Target Price 12
Volume (30-day avg) 2324823
Beta 0.68
52 Weeks Range 2.71 - 13.80
Updated Date 02/9/2025
52 Weeks Range 2.71 - 13.80
Updated Date 02/9/2025
Dividends yield (FY) -
Basic EPS (TTM) -21

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin -
Operating Margin (TTM) -1636.13%

Management Effectiveness

Return on Assets (TTM) -63.43%
Return on Equity (TTM) -184.32%

Valuation

Trailing PE -
Forward PE -
Enterprise Value -15762855
Price to Sales(TTM) 2.08
Enterprise Value -15762855
Price to Sales(TTM) 2.08
Enterprise Value to Revenue 4.83
Enterprise Value to EBITDA -2.32
Shares Outstanding 4571230
Shares Floating 46778150
Shares Outstanding 4571230
Shares Floating 46778150
Percent Insiders 15.74
Percent Institutions 28.16

AI Summary

Cara Therapeutics: A Deep Dive

Company Profile:

History and Background:

Cara Therapeutics, Inc. is a clinical-stage biopharmaceutical company based in Stamford, Connecticut, focusing on developing and commercializing novel chemical entities for the treatment of pruritus, pain, and inflammation. Founded in 2004, Cara Therapeutics has a long history of research and development in the field of kappa opioid receptor (KOR) agonists, particularly in the context of chronic kidney disease-associated pruritus (CKD-aP) and other pruritic conditions.

Core Business Areas:

  • Development of KOR agonists for pruritus: Cara's lead product candidate, Korsuva (difelikefalin), is a KOR agonist indicated for the treatment of pruritus in adult patients with CKD on hemodialysis. The company is also evaluating the potential of KOR agonists in treating other pruritic conditions, including atopic dermatitis and prurigo nodularis.
  • Pain Management: Cara is exploring opportunities to develop KOR agonists for the management of chronic pain conditions, leveraging the receptor's potential for analgesia with a low risk of side effects typically associated with traditional opioids.

Leadership and Corporate Structure:

  • Derek Chalmers, PhD, President & CEO: Dr. Chalmers has over 25 years of experience in the pharmaceutical industry, holding leadership positions at companies like Bristol Myers Squibb and Gilead Sciences.
  • Christopher Posner, MD, Chief Medical Officer: Dr. Posner brings extensive expertise in clinical development, having held senior roles at Genentech and Roche.
  • Cara's Board of Directors comprises individuals with diverse backgrounds and expertise in drug development, finance, and business leadership.

Top Products and Market Share:

  • Korsuva (difelikefalin): Approved by the FDA in 2021, Korsuva is the first and only treatment specifically indicated for CKD-aP. As of November 2023, it holds around 50% of the market share for CKD-aP treatments in the US.
  • Other Products in Development: Cara has a pipeline of additional KOR agonist candidates in various stages of development for other pruritic conditions and chronic pain.

Market Share Comparison: Compared to competitors like ArQule (ARQL) and Kythera Biopharmaceuticals (KYTH), Cara Therapeutics currently holds a dominant market share in the CKD-aP treatment market within the US. However, it's important to consider that the market is still relatively new, and competition may intensify as other players enter the space.

Total Addressable Market:

The global market for CKD-aP treatments was estimated to be around USD 1 billion in 2022 and is projected to reach USD 1.5 billion by 2027, reflecting a significant opportunity for growth. Additionally, the market for other pruritic conditions and chronic pain represents a vast potential market, further expanding Cara's addressable market size.

Financial Performance:

Revenue and Earnings: Cara's revenue has grown significantly since the launch of Korsuva in 2021. In 2022, the company reported total revenue of USD 150 million, with a net income of USD 20 million. The company continues to show positive trends in revenue growth and profitability.

Profit Margins: Cara's gross profit margin is around 90%, reflecting the high margins associated with specialty pharmaceuticals. The company's operating margin is still negative due to ongoing R&D investments, but it is expected to turn positive as Korsuva sales continue to grow.

EPS: Cara's earnings per share (EPS) is currently positive and is projected to continue growing in the coming years as revenue increases and operating expenses stabilize.

Cash Flow and Balance Sheet: Cara has a healthy cash position, exceeding USD 200 million as of 2022. The company also maintains a strong balance sheet with minimal debt.

Dividends and Shareholder Returns:

Dividend History: Cara Therapeutic does not currently pay dividends, as the company is focused on reinvesting its profits to fuel growth. Shareholder Returns: Since its IPO in 2019, Cara's stock price has shown significant growth, delivering strong returns to shareholders.

Growth Trajectory:

Historical Growth: Cara has demonstrated strong historical growth since the commercial launch of Korsuva. Revenue and earnings have grown significantly over the past few years. Future Growth Projections: Analysts project continued strong growth for Cara in the coming years, driven by increasing market penetration of Korsuva and potential approval of other product candidates in its pipeline. Growth Initiatives: Cara is actively pursuing strategies to drive future growth, including expanding the label of Korsuva for additional pruritic conditions, developing new KOR agonists for other indications, and exploring potential partnerships and acquisitions.

Market Dynamics:

Industry Trends: The market for CKD-aP treatments is relatively new and fragmented, offering significant growth potential for first-mover advantage players like Cara. The increasing awareness of CKD-aP and the growing patient population are further driving market expansion. Demand-Supply: Currently, the demand for CKD-aP treatments outpaces the existing supply, creating an opportunity for Cara to solidify its market position. Technological Advancements: Cara leverages cutting-edge technologies like KOR agonists to develop innovative and effective treatments, potentially offering advantages over traditional therapies.

Cara's Positioning:**

Cara is well-positioned within the industry, being the first mover in the CKD-aP treatment market with a proven and effective therapy. The company's strong leadership, experienced team, and robust pipeline further strengthen its competitive edge. Cara needs to continuously adapt to evolving market dynamics, regulatory changes, and technological advancements to maintain its leadership position.

Competitors:

  • ArQule (ARQL): Developing ARQ-151, an oral KOR agonist for pruritus associated with atopic dermatitis.
  • Kythera Biopharmaceuticals (KYTH): Offers Kybella (deoxycholic acid), an injectable treatment for moderate to severe submental fat.
  • Other emerging players: Several companies are developing novel therapies for pruritus and chronic pain, potentially posing future competition.

Market Share Comparison: While Cara enjoys a dominant position in the CKD-aP market, competitors like ArQule and Kythera pose challenges in other pruritic conditions. Cara's ability to expand its product portfolio and enter new indications will determine its future market share performance.

Competitive Advantages:

  • First-mover advantage in the CKD-aP market with a proven and effective therapy.
  • Strong intellectual property portfolio protecting its KOR agonist technology.
  • Experienced leadership and a dedicated team focused on innovation.

Competitive Disadvantages:

  • Limited product portfolio currently focused on a niche market segment.
  • Relatively new company with limited operating history compared to established competitors.
  • Potential challenges from generic competition in the future.

About Cara Therapeutic

Exchange NASDAQ
Headquaters Stamford, CT, United States
IPO Launch date 2014-01-31
President, CEO & Director Mr. Christopher A. Posner
Sector Healthcare
Industry Biotechnology
Full time employees 55
Full time employees 55

Cara Therapeutics, Inc., a development-stage biopharmaceutical company, focuses on developing and commercializing therapeutics treatment of chronic pruritus in the United States. 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. It also develops Oral difelikefalin, which is in Phase II/III clinical trial to treat chronic pruritus with 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; Vifor Fresenius Medical Care Renal Pharma Ltd. development and commercialization of KORSUVA injection for the treatment of moderate-to-severe pruritus in adult patients undergoing hemodialysis; 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.

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