CARA Stock Price Increases Over 15% Pre-Market: Why It Happened

By Amit Chowdhry ● March 8, 2021
  • The stock price of Cara Therapeutics Inc (NASDAQ: CARA) increased by over 15% pre-market. This is why it happened.

The stock price of Cara Therapeutics Inc (NASDAQ: CARA) increased by over 15% pre-market as of 4:12 AM ET. Investors are responding to Cara Therapeutics and Vifor Pharma announcing that the U.S. Food and Drug Administration (FDA) has accepted and granted Priority Review for the New Drug Application (NDA) for KORSUVA (difelikefalin) solution for injection for the treatment of moderate-to-severe pruritus in hemodialysis patients. And the PDUFA target action date for KORSUVA is August 23, 2021. The FDA stated that currently, it is not planning to hold an advisory committee meeting to discuss the application.

The FDA grants Priority Review to drug applications for potential therapies that (if approved) would be significant improvements in the safety or effectiveness of the treatment, diagnosis, or prevention of serious conditions when compared to standard applications. And the NDA filing is supported by positive data from two pivotal Phase 3 trials – KALM-1, conducted in the U.S. (New England Journal of Medicine 2020; 382:222-232), and the global KALM-2, as well as supportive data from an additional 32 clinical studies.

KEY QUOTES:

“The FDA acceptance for filing and granting of Priority Review for the KORSUVA NDA marks a significant milestone for Cara and for the substantial number of hemodialysis patients with chronic intractable pruritus. The FDA’s agreement to expedite the timeline through Priority Review designation aligns with our understanding of the therapeutic potential of KORSUVA to fundamentally change the treatment paradigm for this serious unmet need. We look forward to working with the FDA through the review process and, along with our commercial partner, Vifor Pharma, remain focused on preparing for the U.S. launch of KORSUVA injection, if approved.”

— Derek Chalmers, Ph.D., D.Sc., President and Chief Executive Officer of Cara Therapeutics

“We are delighted that the FDA accepted and granted Priority Review for this breakthrough therapy. Pruritus in hemodialysis patients is a debilitating condition with a significant impact on quality of life and increased risk for hospitalization and mortality. It impacts up to 40% of dialysis patients around the world. If KORSUVA is approved, we will be able to offer a medicine that is in line with our aim to deliver innovative therapies to patients with high unmet medical needs. We are highly committed to bringing this important new treatment to patients in the U.S. as soon as possible following FDA approval, together with our partner Cara Therapeutics.” 

— Stefan Schulze, CEO of Vifor Pharma Group

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.