Cara Therapeutics (NASDAQ:) has made no commitment to update forward-looking statements following the date of their release. For deeper insights into CARA’s financial health and future prospects, InvestingPro subscribers have access to 13 additional ProTips and comprehensive analysis through the Pro Research Report, which provides expert analysis of what really matters for over 1,400 US stocks. For deeper insights into CARA’s financial health and future prospects, InvestingPro subscribers have access to 13 additional ProTips and comprehensive analysis through the Pro Research Report, which provides expert analysis of what really matters for over 1,400 US stocks.
The company’s stock will begin trading on a split-adjusted basis when markets open on Tuesday, December 31, 2024, under the existing ticker “CARA” but with a new CUSIP number, 140755 208. Despite recent challenges, InvestingPro analysis reveals the company maintains a healthy liquidity position with a current ratio of 4.77, indicating strong ability to meet short-term obligations. The reverse stock split is set to reduce the number of issued and outstanding shares from about 54.9 million to roughly 4.6 million. Fractional shares resulting from the split will not be issued; instead, shareholders will receive a cash payment for their fractional share entitlements.
The reverse stock split is said to affect all shareholders uniformly, preserving their relative ownership interests in the company, barring adjustments for fractional shares. The company also noted that adjustments will be made to outstanding stock options and equity incentive plans to reflect the reverse stock split.
Cara Therapeutics has developed an IV formulation of difelikefalin, which is approved for the treatment of moderate-to-severe pruritus in adults undergoing hemodialysis due to advanced chronic kidney disease. This product is out-licensed globally.
The company’s announcement includes forward-looking statements that involve risks and uncertainties, including the possibility that the reverse stock split may not lead to a sustained increase in the bid price of the company’s common stock. Cara Therapeutics has made no commitment to update forward-looking statements following the date of their release.
This news is based on a press release statement from Cara Therapeutics.
In other recent news, Cara Therapeutics and Tvardi Therapeutics, a privately held biopharmaceutical company, have announced a definitive merger agreement. The all-stock transaction will lead to the creation of a combined entity focusing on the development of treatments for fibrosis-driven diseases. According to the agreement terms, Tvardi will merge with a wholly owned subsidiary of Cara, resulting in a new company named Tvardi Therapeutics, Inc.
The merged entity will be made up of approximately 17% pre-merger Cara stockholders and about 83% pre-merger Tvardi investors. The combined company is expected to have sufficient funds to operate into the second half of 2026, with the help of a recently completed private financing round of approximately $28 million by Tvardi and the anticipated cash balance of Cara.
In line with the merger, Cara has also agreed to an asset purchase agreement with Vifor Fresenius Medical Care (NYSE:) Renal Pharma, Ltd., selling certain assets and rights related to Korsuva®/Kapruvia®. The combined company will focus on advancing Tvardi’s pipeline, including TTI-101, which is currently in Phase 2 trials for idiopathic pulmonary fibrosis (IPF) and in Phase 1b/2 trials for hepatocellular carcinoma (HCC).
The merger, which has been approved by both companies’ boards, is expected to close in the first half of 2025, subject to stockholder approval and other customary closing conditions.
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