Full Press Release Details
Cara Therapeutics Reports Third Quarter 2017 Financial Results
Management to host conference call today at 4:30 p.m. ET
STAMFORD, Conn., November 2, 2017 Cara Therapeutics, Inc. (NASDAQ:CARA), a biotechnology company focused on developing and
commercializing new chemical entities designed to alleviate pruritus and pain by selectively targeting peripheral kappa opioid receptors, today announced its financial results for the third quarter ended September 30, 2017.
We are particularly pleased with the progress made in our pruritus program this quarter, including successful completion of our end-of-Phase 2 meeting
with the FDA, supporting our plan to initiate our first pivotal Phase 3 efficacy trial of I.V. CR845 for the treatment of CKD-aP in hemodialysis patients in the U.S. by the end of 2017, said Derek Chalmers, Ph.D., D.Sc., President and Chief
Executive Officer of Cara Therapeutics. We also recently initiated a Phase 1 study of Oral CR845 in patients with Stage III-V CKD which will inform dose selection and design of our planned Phase 2 trial in this patient population for early in
2018. We believe that CR845 has the potential to provide meaningful benefit to a range of patients suffering from pruritus, including patients with various stages of CKD as well as those with chronic liver disease. In addition, we continue towards
full enrollment in the ongoing Phase 3 trial with I.V. CR845 for acute post-operative pain in patients undergoing abdominal surgery.
Quarter and Recent Business Highlights
I.V. CR845: Chronic Kidney Disease Associated Pruritus (CKD-aP): Hemodialysis
Oral CR845: Chronic Kidney Disease Associated Pruritus (CKD-aP): Non-Hemodialysis
I.V. CR845: Acute Post-Operative Pain
The Company expects to make presentations at the following conferences through November 2017:
Quarter 2017 Financial Results
Net Loss: The Company reported a net loss of $12.4 million, or $0.38 per basic and diluted share, in the third
quarter of 2017 compared to a net loss of $11.5 million, or $0.42 per basic and diluted share, in the same period of 2016.
Revenues: The Company
did not recognize any revenue during the third quarter of 2017 or 2016.
Research and Development (R&D) Expenses: R&D expenses were $9.2
million in the third quarter of 2017 compared to $9.7 million in the same period of 2016. The marginally lower R&D expenses in the third quarter of 2017 were principally due to a net decrease in direct clinical trial costs, partially offset by
increases in stock-based compensation and personnel-related costs.
General and Administrative (G&A) Expenses: G&A expenses were $3.8
million in the third quarter of 2017 compared to $2.1 million in the same period of 2016. The higher G&A expenses in the third quarter of 2017 were principally due to increases in stock-based compensation, personnel-related costs and
Other Income: Other income was $367,000 in the third quarter of 2017 compared to $176,000 in the third
quarter of 2016. The increase in 2017 was primarily due to higher dividend and interest income resulting from higher interest rates on a higher average balance of the Company s portfolio of investments in the 2017 period.
Cash and Cash Equivalents and Marketable Securities Position: At September 30, 2017, cash and cash equivalents and marketable securities totaled
$103.0 million compared to $58.3 million at December 31, 2016. The increase in the balance of cash and cash equivalents and marketable securities primarily resulted from the net proceeds of $86.2 million from the Company s follow-on public
offering of common stock in April 2017 and $1.5 million received from the exercise of stock options, partially offset by cash used in operations of $43.4 million.
Based on timing expectations and
projected costs for current clinical development plans, Cara expects that its existing cash and cash equivalents and available-for-sale marketable securities will be sufficient for the Company to fund its operating expenses and capital expenditure
requirements into 2019, without giving effect to any potential milestone payments under existing collaborations.
Cara management will host a conference call today at 4:30 p.m. ET to discuss third quarter 2017 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 1853199. 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 and pruritus by selectively targeting peripheral kappa opioid receptors (KORS). Cara is developing a novel and
proprietary class of product candidates, led by CR845, a first-in-class KOR agonist that targets the body s peripheral nervous system and certain immune cells. CR845 has demonstrated initial signs of efficacy in patients with moderate-to-severe
pain, without inducing many of the undesirable side effects typically associated with currently available opioid pain therapeutics. In Phase 2 trials, CR845 has demonstrated statistically significant reductions in itch intensity and concomitant
improvement in quality of life measures in patients with moderate-to-severe chronic kidney disease-associated pruritus.
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 of the Company s ongoing and planned clinical trials, the potential results of ongoing and
planned clinical trials, expected industry and investor presentations and the Company s expected cash reach. 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 Annual Report on Form 10-K for
the year ended December 31, 2016 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.
CONDENSED STATEMENTS OF OPERATIONS
(amounts in thousands, except share and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue: | ||||||||||||||||
| License and milestone fees revenue | $ | $ | $ | 530 | $ | |||||||||||
| Collaborative revenue | 313 | |||||||||||||||
| Clinical compound revenue | 68 | 86 | ||||||||||||||
| Total revenue | 911 | 86 | ||||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 9,151 | 9,671 | 36,948 | 28,976 | ||||||||||||
| General and administrative | 3,805 | 2,102 | 8,877 | 7,195 | ||||||||||||
| Total operating expenses | 12,956 | 11,773 | 45,825 | 36,171 | ||||||||||||
| Operating loss | (12,956 | ) | (11,773 | ) | (44,914 | ) | (36,085 | ) | ||||||||
| Interest income | 367 | 176 | 788 | 498 | ||||||||||||
| Loss before benefit from income taxes | (12,589 | ) | (11,597 | ) | (44,126 | ) | (35,587 | ) | ||||||||
| Benefit from income taxes | 145 | 55 | 178 | 279 | ||||||||||||
| Net loss | $ | (12,444 | ) | $ | (11,542 | ) | $ | (43,948 | ) | $ | (35,308 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and Diluted | $ | (0.38 | ) | $ | (0.42 | ) | $ | (1.43 | ) | $ | (1.29 | ) | ||||
| Weighted average shares: | ||||||||||||||||
| Basic and Diluted | 32,591,550 | 27,282,863 | 30,729,752 | 27,275,133 |
CARA THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
| September 30, 2017 | December 31, 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,792 | $ | 12,092 | ||||
| Marketable securities | 91,190 | 46,184 | ||||||
| Income tax receivable | 705 | 852 | ||||||
| Other receivables | 97 | 87 | ||||||
| Prepaid expenses | 1,492 | 1,530 | ||||||
| Restricted cash, current | 700 | 700 | ||||||
| Total current assets | 105,976 | 61,445 | ||||||
| Property and equipment, net | 1,302 | 1,614 | ||||||
| Restricted cash | 769 | 769 | ||||||
| Total assets | $ | 108,047 | $ | 63,828 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 7,272 | $ | 11,533 | ||||
| Total current liabilities | 7,272 | 11,533 | ||||||
| Deferred lease obligation | 1,701 | 1,570 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders equity: | ||||||||
| Preferred stock | ||||||||
| Common stock | 33 | 27 | ||||||
| Additional paid-in capital | 305,165 | 212,866 | ||||||
| Accumulated deficit | (206,164 | ) | (162,171 | ) | ||||
| Accumulated other comprehensive income | 40 | 3 | ||||||
| Total stockholders equity | 99,074 | 50,725 | ||||||
| Total liabilities and stockholders equity | $ | 108,047 | $ | 63,828 |
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