Full Press Release Details
Cara Therapeutics Reports Fourth Quarter and Full Year
2013 Financial Results
- Conference call today at 4:30pm ET -
SHELTON, CONN., March 27, 2014 Cara Therapeutics, Inc. (NASDAQ: CARA), a biopharmaceutical company focused on developing and
commercializing new chemical entities designed to alleviate pain by selectively targeting kappa opioid receptors, today announced financial results for the fourth quarter and full year ended December 31, 2013.
We are very pleased with the overall progress we ve made in 2013 and early 2014 with regard to the development programs for both our lead product
candidate for acute pain, IV CR845, and our oral formulation of CR845, said Derek Chalmers, Ph.D., President and Chief Executive Officer of Cara Therapeutics.
The positive results from our Phase 2 bunionectomy trial, combined with our previously demonstrated efficacy in a Phase 2 laparoscopic hysterectomy
trial, are indicative of IV CR845 s broad analgesic potential. Looking forward, in 2014, we expect to continue executing on our development plan to enable Phase 3 registration trials of IV CR845. Our recently completed initial public offering
of common stock raised approximately $55.9 million for the company and provides Cara with the financial resources to fully develop our IV CR845 product candidate while advancing our oral tablet formulation through early clinical trials.
Fourth Quarter and Recent Business Highlights
Expected 2014 Milestones
Fourth Quarter 2013 Financial Results
Available to Common Stockholders: The Company reported net loss available to common stockholders of $2.1 million, or $0.49 per basic and diluted share, for the fourth quarter of 2013, compared to net loss available to common stockholders of $1.8
million, or $0.54 per basic and diluted share, for the same period last year.
Revenues: Revenues were $1.0 million in the fourth quarter of 2013,
consisting primarily of the Company s recognition of a portion of the deferred revenue relating to the license agreement with Maruishi Pharmaceuticals Co. Ltd. entered into in April 2013. The Company did not generate any revenue during the
fourth quarter of 2012.
Research and Development (R&D) Expenses: R&D expenses were $2.0 million in the fourth quarter 2013, compared to
$1.0 million in the same period last year. The higher 2013 R&D expenses in the fourth quarter were principally due to increased preclinical and clinical trial costs with CR845. The increase in clinical trial and preclinical costs resulted
from a Phase 1 renal impairment trial with IV CR845, and formulation and studies with oral tablets of CR845, respectively.
General and Administrative
(G&A) Expenses: G&A expenses were $1.1 million in the fourth quarter 2013, compared to $0.7 million in the same period last year. The increases in the fourth quarter were primarily due to increased accounting, legal and consulting
professional fees in connection with the preparation for the Company s initial public offering.
Interest Expense, net: Interest expense, net
was $9,000 of income in the fourth quarter 2013, compared to expense of $38,000 in the same period last year.
Full Year 2013 Financial Results
Net Loss Available to Common Stockholders: The Company reported net loss available to common stockholders of $3.1 million, or $0.74 per basic
and diluted share, for the year ended December 31, 2013, compared to net loss available to common stockholders of $6.3 million, or $1.90 per basic and diluted share, for the year ended December 31, 2012.
Revenues: Revenues were $12.0 million for the year ended December 31, 2013, compared to $1.2 million for the year ended December 31,
2012. Revenues for 2013 represent the Company s recognition of the upfront payment received relating to the license agreement with Maruishi. Revenues for 2012 represent the Company s recognition of the $0.6 million upfront payment
received upon execution of the license agreement with Chong Kun Dang Pharmaceutical Corp. in April 2012, as well as a milestone payment of $0.6 million.
Research and Development (R&D) Expenses: R&D expenses were $8.7 million for the year ended
December 31, 2013, compared to $4.6 million for the year ended December 31, 2012. The increased R&D expenses in 2013 were principally the result of increased preclinical and CR845 clinical trial costs of $3.7 million during 2013.
The increase in CR845 clinical trial costs resulted primarily from the completion of the Phase 2 bunionectomy trial, the Phase 1 IV CR845 renal impairment trial and preclinical costs for formulation and studies related to oral tablets of CR845.
General and Administrative (G&A) Expenses: G&A expenses were $3.5 million for the year ended December 31, 2013, compared to $2.8 million
for the year ended December 31, 2012. The increase in G&A expenses was primarily due to increased accounting, legal and consulting professional fees incurred in connection with the preparation for the Company s initial public
offering and consulting fees incurred in connection with the Maruishi license agreement.
Interest Expense, net: Interest expense, net, was $3.8
million for the year ended December 31, 2013, compared to $66,000 for the year 2012 ended December 31. The increase in interest expense, net, was primarily related to accrued interest expense and non-cash expenses in connection with the
Company s convertible promissory notes, which were issued in December 2012 and February 2013.
Cash Position: At December 31, 2013, cash
and cash equivalents totaled $12.4 million, compared to $1.1 million at December 31, 2012. This does not include the Company s recently-completed initial public offering on February 5, 2014, which raised approximately $55.9
million in net proceeds.
management will host a conference call today at 4:30 p.m. ET to discuss fourth quarter and full year 2013 financial results and provide a business update.
To participate in the conference call, please dial 855-445-2816 (domestic) or 484-756-4300 (international) and refer to conference ID 17274514. A live webcast
of the call can be accessed under Events and Presentations in the News & Investors section of the Company s website at www.CaraTherapeutics.com.
An archived webcast recording will be available on the Cara website beginning approximately two hours after the call.
About Cara Therapeutics
Cara Therapeutics is a
clinical-stage biopharmaceutical company focused on developing and commercializing new chemical entities designed to alleviate pain by selectively targeting kappa opioid receptors. Cara is developing a novel and proprietary class of product
candidates that target the body s peripheral nervous system and have demonstrated efficacy in patients with moderate-to-severe pain without inducing many of the undesirable side effects typically associated with currently available pain
therapeutics. For additional information about the Company, please visit www.CaraTherapeutics.com.
Forward-looking Statements
Statements 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 expected timing for the Company s clinical trials, statements concerning the potential results of planned
clinical trials and future development milestones for the Company s product candidates. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking
statements. Risks are described more fully in Cara Therapeutics filings with the Securities and Exchange Commission, including the Risk Factors section of the Company s final prospectus for its initial public offering and
its other documents subsequently filed with or furnished to the Securities and Exchange Commission. 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.
- Financial tables follow -
CARA THERAPEUTICS, INC.
STATEMENT OF OPERATIONS
(amounts in thousands, except share and per share data)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2012 | 2013 | 2012 | 2013 | |||||||||||||
| Revenue: | ||||||||||||||||
| License and milestone fees | $ | $ | $ | 1,190 | $ | 9,637 | ||||||||||
| Collaborative revenue | 973 | 2,327 | ||||||||||||||
| Total revenue | 973 | 1,190 | 11,964 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,023 | 1,978 | 4,597 | 8,685 | ||||||||||||
| General and administrative | 746 | 1,100 | 2,829 | 3,516 | ||||||||||||
| Total operating expenses | 1,769 | 3,078 | 7,426 | 12,201 | ||||||||||||
| Operating loss | (1,769 | ) | (2,105 | ) | (6,236 | ) | (237 | ) | ||||||||
| Interest expense, net | (38 | ) | 9 | (66 | ) | (3,756 | ) | |||||||||
| Loss before benefit from income taxes | (1,807 | ) | (2,096 | ) | (6,302 | ) | (3,993 | ) | ||||||||
| Benefit from income taxes | 10 | 3 | 31 | 30 | ||||||||||||
| Net loss | $ | (1,797 | ) | $ | (2,093 | ) | $ | (6,271 | ) | $ | (3,963 | ) | ||||
| Net loss available to common stockholders: Basic and Diluted | $ | (1,797 | ) | $ | (2,093 | ) | $ | (6,271 | ) | $ | (3,072 | ) | ||||
| Loss per share available to common stockholders: | ||||||||||||||||
| Basic and Diluted | $ | (0.54 | ) | $ | (0.49 | ) | $ | (1.90 | ) | $ | (0.74 | ) | ||||
| Weighted average shares: | ||||||||||||||||
| Basic and Diluted | 3,328,698 | 4,288,243 | 3,299,993 | 4,133,138 |
CARA THERAPEUTICS, INC.
| December 31, | ||||||||
| 2012 | 2013 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,117 | $ | 12,357 | ||||
| Income tax receivable | 31 | 61 | ||||||
| Prepaid expenses & other current assets | 80 | 2,140 | ||||||
| Total current assets | 1,228 | 14,558 | ||||||
| Property and equipment, net | 3,609 | 2,825 | ||||||
| Restricted cash | 700 | 700 | ||||||
| Total assets | $ | 5,537 | $ | 18,083 | ||||
| Liabilities, convertible preferred stock and stockholders (deficit) equity | ||||||||
| Current liabilities: | ||||||||
| Current installment of long-term debt | $ | 307 | $ | |||||
| Convertible promissory notes | 473 | |||||||
| Accounts payable and accrued expenses | 906 | 1,958 | ||||||
| Deferred Revenue | 3,475 | |||||||
| Total current liabilities | 1,686 | 5,433 | ||||||
| Deferred lease obligation | 1,377 | 1,139 | ||||||
| Liability under license agreement | 35 | |||||||
| Commitments and contingencies | ||||||||
| Convertible Preferred stock | 58,522 | 65,586 | ||||||
| Benefical conversion feature on Convertible Promissory Notes | 2,050 | |||||||
| Stockholders (deficit) equity: | ||||||||
| Common stock | 3 | 4 | ||||||
| Additional paid-in capital | 1,248 | 8,377 | ||||||
| Accumulated deficit | (59,384 | ) | (62,456 | ) | ||||
| Total stockholders (deficit) equity | (58,133 | ) | (54,075 | ) | ||||
| Total liabilities, convertible preferred stock and stockholders (deficit) equity | $ | 5,537 | $ | 18,083 |
Baumgartner, Stern Investor Relations, 212-362-1200
Tony Plohoros, 6 Degrees PR, 908-940-0135