By Colin Kellaher

 

Cara Therapeutics Inc. on Tuesday said the U.S. Food and Drug Administration's recent approval of Korsuva triggers a $50 million equity investment from partner Vifor Pharma AG.

Cara, a Stamford, Conn., biopharmaceutical company, last year signed a license agreement giving Swiss pharmaceuticals company Vifor full U.S. commercialization rights to Korsuva in the U.S. dialysis segment.

The FDA last week approved Korsuva for the treatment of moderate-to-severe pruritus, a systemic itch condition, in hemodialysis patients.

As part of the licensing agreement, Vifor will buy about 3.28 million Cara shares at $15.23 apiece, a 20% premium to the 30-day average price prior to the FDA approval, Cara said in a filing with the Securities and Exchange Commission. The stock closed at $14.83 on Monday.

Vifor is already Cara's largest shareholder, with a roughly 14% stake, according to FactSet.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

August 31, 2021 08:14 ET (12:14 GMT)

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