Cara Therapeutics Announces Pricing of $126.5 Million Offering of Common Stock
July 24 2019 - 8:42PM
Cara Therapeutics, Inc. (Nasdaq: CARA), a clinical-stage
biopharmaceutical company focused on developing and commercializing
new chemical entities designed to alleviate pruritus by selectively
targeting peripheral kappa opioid receptors, today announced the
pricing of its underwritten public offering of 5,500,000 shares of
its common stock at a public offering price of $23.00 per share.
The offering is expected to close on or about July 29, 2019,
subject to the satisfaction of customary closing conditions.
The gross proceeds from the offering, before deducting underwriting
discounts and commissions and estimated offering expenses payable
by Cara Therapeutics, are expected to be approximately $126.5
million. In addition, Cara Therapeutics expects to grant certain of
the underwriters a 30-day option to purchase up to 825,000
additional shares of its common stock on the same terms and
conditions. All of the shares in the proposed offering are to be
sold by Cara Therapeutics.
Cara Therapeutics intends to use the net
proceeds from the underwritten offering to fund the activities
leading to the submission of a new drug application to the U.S.
Food and Drug Administration (FDA) for KORSUVA
(CR845/difelikefalin) Injection for the treatment of pruritus
associated with chronic kidney disease (CKD) in hemodialysis
patients and subsequent pre-commercialization activities, and the
advancement of its clinical programs for Oral KORSUVA, including
completion of Phase 2 trials for the treatment of pruritus in
patients with CKD (Stage III-V), patients with chronic liver
disease and patients with atopic dermatitis, as well as for working
capital and other general corporate purposes.
J.P. Morgan and Jefferies acted as lead joint
book-running managers for the offering. Piper Jaffray & Co. and
Stifel also acted as book-runners for the offering. Needham &
Company and Janney Montgomery Scott acted as co-managers for the
offering.
The offering is being made only by means of a
written prospectus supplement and prospectus forming part of a
shelf registration statement previously filed with and declared
effective by the Securities and Exchange Commission (SEC). Copies
of the final prospectus supplement and accompanying prospectus may
be obtained, when available, by contacting J.P. Morgan
Securities LLC, Attention: Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY 11717, by telephone at (866)
803-9204, or by email at prospectus-eq_fi@jpmchase.com; Jefferies
LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison
Avenue, 2nd Floor, New York, NY 10022, by telephone at (877)
821-7388, or by email at prospectus_department@jefferies.com; Piper
Jaffray & Co., Attention: Prospectus Department, 800 Nicollet
Mall, J12S03, Minneapolis, MN 55402, by telephone at (800)
747-3924, or by email at prospectus@pjc.com; or from Stifel,
Nicolaus & Company, Incorporated, Attention: Syndicate, One
Montgomery Street, Suite 3700, San Francisco, CA 94104, by
telephone at (415) 364-2720, or by email at
syndprospectus@stifel.com.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy these securities, nor
shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Cara
Therapeutics
Cara Therapeutics is a clinical-stage
biopharmaceutical company focused on developing and commercializing
new chemical entities designed to alleviate pruritus by selectively
targeting peripheral kappa opioid receptors (KORs). Cara is
developing a novel and proprietary class of product candidates, led
by KORSUVA™ (CR845/difelikefalin), a first-in-class KOR agonist
that targets the body's peripheral nervous system, as well as
certain immune cells. In both Phase 3 and Phase 2 trials, KORSUVA
Injection has demonstrated statistically significant reductions in
itch intensity and concomitant improvement in quality of life
measures in hemodialysis patients with moderate-to-severe chronic
kidney disease-associated pruritus (CKD-aP). KORSUVA Injection is
currently being investigated in pivotal Phase 3 trials in
hemodialysis patients with CKD-aP. Oral KORSUVA is in Phase 2
trials for the treatment of pruritus in patients with CKD, atopic
dermatitis and primary biliary cholangitis (PBC).
The FDA has conditionally accepted KORSUVA™ as
the trade name for difelikefalin injection. CR845/difelikefalin is
an investigational drug product and its safety and efficacy have
not been fully evaluated by any regulatory authority.
Forward-Looking Statements
This press release contains or may imply
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Because such
statements deal with future events and are based on Cara
Therapeutics’ current expectations, they are subject to various
risks and uncertainties and actual results, performance or
achievements of Cara Therapeutics could differ materially from
those described in or implied by the statements in this press
release. For example, forward-looking statements include statements
regarding Cara Therapeutics’ public offering, including the
satisfaction of customary closing conditions and its anticipated
use of proceeds from the offering. These forward-looking statements
are subject to other risks and uncertainties discussed in Cara
Therapeutics’ filings with the SEC; including in the “Risk Factors”
section of Cara Therapeutics’ Annual Report on Form 10-K for the
year ended December 31, 2018, filed with the SEC on March 12, 2019
and subsequent filings with the SEC. Except as otherwise required
by law, Cara Therapeutics disclaims any intention or obligation to
update or revise any forward-looking statements, which speak only
as of the date hereof, whether as a result of new information,
future events or circumstances or otherwise.
CORPORATE CONTACT:Derek Chalmers, Ph.D.,
D.Sc.President & CEOCara Therapeutics, Inc.203-406-3700
MEDIA CONTACT:Annie Starr6
Degrees973-415-8838astarr@6degreespr.com
INVESTOR CONTACT:Jane UrheimStern Investor
Relations, Inc.212-362-1200jane.urheim@sternir.com
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