After a pullback, Cara Therapeutics Inc (NASDAQ:CARA) has resumed its uptrend, bolstered by a better-than-expected third quarter earnings report.
Shares closed Monday at $8.38, up 15.27%, with 3.24 million traded.
Technically, Cara has bounced back after its correction from its recent high of $9.87. That high was reached after the stock broke out from an inverted head and shoulder reversal pattern which we highlighted in our article of September 28.
The immediate trigger for the bounce over the last two trading sessions appears to be the company’s third quarter earnings report, following which Cara penetrated up and through the 20-day, 50-day and 200-day moving averages, on solid volume.
Cara Therapeutics Inc (NASDAQ:CARA) in Q3
During the third quarter reported a net loss of $11.5 million, or $0.42 per share, for the third quarter of 2016 compared to a net loss of $4.8 million, or $0.19 per share, for the same period of 2015. Though the company’s loss widened, it was still better than analysts’ expectations of a loss of $0.47 per share.
“We are pleased to be actively enrolling late stage studies with both IV and oral formulations of CR845 for three significant unmet medical indications,” said Derek Chalmers, Ph.D., D.Sc., President and Chief Executive Officer in a statement. “2017 will be an exciting and transformative year for the Company as we look forward to sharing top-line data from all three of our late-stage clinical programs.”
The three programs referred above are in respect of the company’s CR845 drug:
- Part A of the adaptive Phase 2/3 trial of I.V. CR845 in 160 dialysis patients suffering from moderate-to-severe uremic pruritus (UP)
- A pharmacokinetic safety trial of multiple doses of Oral CR845 in hemodialysis patients to define bioequivalent tablet strengths
- A 330 patient Phase 2b trial of Oral CR845, for the treatment of pain associated with osteoarthritis
For its development program, Cara had a warchest of cash and cash equivalents worth $71.4 million as at end-quarter, which the company says will be enough to see it through end-2018.
“We’re encouraged that our strong trial enrollment rates in each of these late-stage programs will afford top-line data-readouts within a relatively short timeframe,” said Chalmers on the conference call.