Cara Therapeutics Announces up to $40.0 Million Non-Dilutive Financing Agreement with HealthCare Royalty
November 02 2023 - 7:00AM
Cara Therapeutics, Inc. (Nasdaq: CARA), a commercial-stage
biopharmaceutical company leading a new treatment paradigm to
improve the lives of patients suffering from pruritus, today
announced it has entered into a Royalty Interest Purchase and Sale
Agreement (the agreement) with HealthCare Royalty (HCRx).
Cara intends to use the proceeds from the
agreement to support the ongoing clinical development of its oral
difelikefalin pipeline, including late-stage programs for pruritus
associated with atopic dermatitis, advanced chronic kidney disease,
and notalgia paresthetica.
“This non-dilutive capital strengthens our
balance sheet and fuels the continued advancement of our three
late-stage oral difelikefalin clinical programs,” said Christopher
Posner, President and Chief Executive Officer of Cara Therapeutics.
“Importantly, this financing is expected to extend our cash runway
into 2025.”
Under the terms of the agreement, Cara will
receive an initial payment of $17.5 million, less certain expenses.
Cara will receive an additional payment of $20.0 million upon
Kapruvia® (difelikefalin) receiving a certain minimum price in
Germany, which is expected to occur this quarter. In addition, if
KORSUVA achieves certain specified 2024 performance levels in
Japan, Cara will receive a $2.5 million milestone payment. In
exchange, HCRx will receive all royalties due to Cara from KORSUVA®
(difelikefalin) injection / Kapruvia® ex-U.S. license agreements
with CSL Vifor and Maruishi Pharmaceutical Co., Ltd. The
arrangement with HCRx specifically excludes KORSUVA injection in
the U.S. and all of Cara’s oral difelikefalin internal development
programs.
The aggregate royalty payments to HCRx are
capped at 2.0x the payments to Cara if received before the end of
2029. Otherwise, the payments are capped at 2.8x after which Cara
will resume receiving all royalties from both CSL Vifor and
Maruishi.
Armentum Partners served as financial advisor
and Cooley LLP served as legal advisor to Cara. Morgan, Lewis &
Bockius LLP acted as legal advisor to HCRx.
About Cara Therapeutics
Cara Therapeutics is a commercial-stage
biopharmaceutical company leading a new treatment paradigm to
improve the lives of patients suffering from pruritus. The
Company’s KORSUVA® (difelikefalin) injection is the first and only
FDA-approved treatment for moderate-to-severe pruritus associated
with chronic kidney disease in adults undergoing hemodialysis. The
Company is developing an oral formulation of difelikefalin and has
Phase 3 programs ongoing for the treatment of pruritus in patients
with advanced chronic kidney disease and atopic dermatitis. In
addition, the Company has an ongoing Phase 2/3 program of oral
difelikefalin for the treatment of moderate-to-severe pruritus in
patients with notalgia paresthetica. For more information, visit
www.CaraTherapeutics.com and follow the company on X (Twitter),
LinkedIn and Instagram.
About HealthCare Royalty
HCRx is a leading royalty acquisition company focused on
commercial or near-commercial stage biopharmaceutical products and
has offices in Stamford (CT), San Francisco, Boston and London. For
more information, visit www.hcrx.com. HEALTHCARE ROYALTY® and HCRx®
are registered trademarks of HealthCare Royalty Management,
LLC.
Forward-looking StatementsStatements contained
in this press release regarding matters that are not historical
facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Examples of these
forward-looking statements include statements concerning the
potential for the Company’s product candidates to be alternatives
in the therapeutic areas investigated, the potential benefits of
the agreement with Healthcare Royalty, the Company’s intended use
of proceeds received from the agreement, potential for receipt of
milestone payments based off of 2024 performance levels of KORSUVA
in Japan, and the pricing for Kapruvia® (difelikefalin) in Germany
and the timing thereof. Because such statements are subject to
risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements.
These risks and uncertainties include the risks inherent in the
launch of new products, including that our commercial partners may
not perform as expected, risks inherent in the clinical and
regulatory development of pharmaceutical products, and the risks
described more fully in Cara Therapeutics’ filings with the
Securities and Exchange Commission, including the “Risk Factors”
section of the Company’s Annual Report on Form 10-K for the year
ending December 31, 2022 and its other documents subsequently filed
with or furnished to the Securities and Exchange Commission,
including its Form 10-Q for the quarter ended June 30, 2023. All
forward-looking statements contained in this press release speak
only as of the date on which they were made. Cara Therapeutics
undertakes no obligation to update such statements to reflect
events that occur or circumstances that exist after the date on
which they were made, except as required by law.
MEDIA CONTACT:Annie Spinetta6
Degrees973-768-2170aspinetta@6degreespr.com
INVESTOR CONTACT:Iris Francesconi, Ph.D.Cara
Therapeutics203-406-3700investor@caratherapeutics.com
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