Cara Therapeutics (CARA) AI Stock Analysis

• Market Cap: $22.41M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -65.96%
• EPS Growth: 40.80%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -1.68
• Shares Outstanding: 4,573,606
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: -0.49
• Price to Book (P/B): -25.32
• Price to Sales (P/S): 3.65
• P/FCF Ratio: -5.78
• Enterprise Value/Market Cap: 7.60
• Enterprise Value/Revenue: 6.00
• Enterprise Value/Gross Profit: 28.55
• Enterprise Value/Ebitda: -0.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ―

Cara Therapeutics' overall score is influenced by significant financial difficulties, with declining revenues and persistent losses indicating a challenging financial situation. However, the recent merger with Tvardi Therapeutics offers potential for strategic growth and improved market positioning. Positive technical indicators suggest some market optimism, but poor valuation metrics remain a concern. The company's future largely hinges on successful integration and execution post-merger.

Cara Therapeutics Business Overview & Revenue Model

Company Description

Cara Therapeutics, Inc., an early commercial-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States. The company is developing product candidates that target the body's peripheral nervous system and immune cells. The company's lead product is KORSUVA (difelikefalin) injection for the treatment of moderate-to-severe pruritus associated with chronic kidney disease (CKD) in adults undergoing hemodialysis. Its product candidate includes Oral KORSUVA (difelikefalin), which has completed Phase II clinical trial to treat pruritus atopic dermatitis and pruritus non-dialysis-dependent chronic kidney disease (NDD-CKD) associated pruritus; and in Phase II clinical trial to treat pruritus chronic liver disease (CLD) primary biliary cholangitis (PBC) and notalgia paresthetica. The company has license agreements with Maruishi Pharmaceutical Co., Ltd to develop, manufacture, and commercialize drug products containing difelikefalin for acute pain and uremic pruritus in Japan; and Chong Kun Dang Pharmaceutical Corporation to develop, manufacture, and commercialize drug products containing difelikefalin in South Korea. Cara Therapeutics, Inc. was incorporated in 2004 and is based in Stamford, Connecticut.

How the Company Makes Money

Cara Therapeutics generates revenue primarily through the commercialization of its lead product, KORSUVA injection. The company earns money by selling this product to healthcare providers and institutions treating patients with chronic kidney disease on dialysis who experience pruritus. Additionally, Cara Therapeutics has entered into strategic partnerships and licensing agreements with other pharmaceutical companies to expand the distribution and commercialization of KORSUVA in various markets outside the United States, which contributes to its revenue through milestone payments and royalties. The company's financial performance is significantly influenced by regulatory approvals, market acceptance of its product, and the ability to successfully expand its distribution network.

Cara Therapeutics Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.57M	7.14M	0.00	0.00	23.03M	135.08M
Gross Profit	5.97M	6.33M	0.00	0.00	21.47M	0.00
EBITDA	-35.97M	-62.60M	-17.25M	-20.45M	-86.89M	8.73M
Net Income	-45.08M	-70.87M	-17.35M	-20.54M	-88.44M	8.41M
Balance Sheet
Total Assets	38.95M	43.83M	27.00M	45.10M	247.06M	271.16M
Cash, Cash Equivalents and Short-Term Investments	34.22M	37.90M	22.92M	43.74M	167.03M	180.93M
Total Debt	0.00	44.45M	368.00K	450.00K	3.67M	5.28M
Total Liabilities	47.02M	48.42M	89.06M	90.15M	19.53M	22.16M
Stockholders Equity	-8.07M	-4.59M	-62.06M	-45.05M	227.52M	249.00M
Cash Flow
Free Cash Flow	-35.37M	-61.96M	-21.04M	-17.92M	-60.13M	-5.84M
Operating Cash Flow	-35.16M	-60.92M	-21.04M	-17.87M	-60.09M	-5.49M
Investing Cash Flow	22.79M	48.74M	22.47M	-22.00M	-4.75M	-20.27M
Financing Cash Flow	-1.91M	-3.60M	2.00K	4.00K	46.61M	39.14M

Cara Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	7.38B	5.86	-28.19%	5.57%	26.41%	6.62%
CARA	53 Neutral	$22.41M	―	-270.01%	―	-65.96%	40.80%
SLRX	30 Underperform	$1.31M	―	-300.16%	―	―	79.57%
PCSA	29 Underperform	$5.58M	―	-192.72%	―	―	56.26%
WINT	28 Underperform	$13.77M	―	-120.01%	―	―	97.84%
QNRX	25 Underperform	$4.99M	―	-138.80%	―	―	42.26%
VINC	15 Underperform	$1.44M	―	-431.29%	―	―	48.17%

Cara Therapeutics Corporate Events

Cara Therapeutics Completes Merger with Tvardi Therapeutics

On April 15, 2025, Cara Therapeutics completed its merger with Tvardi Therapeutics, resulting in the formation of a Nasdaq-listed company named Tvardi Therapeutics, Inc. The merger, accompanied by a reverse stock split and a private placement financing, positions Tvardi to advance its clinical programs targeting fibrosis-driven diseases, with anticipated data readouts in 2025 and 2026. The merger also involved a significant restructuring of the company’s board and management, aligning with Tvardi’s strategic focus.

Spark’s Take on CARA Stock

According to Spark, TipRanks’ AI Analyst, CARA is a Neutral.

Cara Therapeutics is currently facing significant financial difficulties, with declining revenues and persistent losses weighing heavily on its prospects. However, the technical indicators show positive momentum, and the strategic merger with Tvardi Therapeutics offers a potential path to future growth and improvement in market positioning. The poor valuation remains a concern, but the merger could help address financial stability issues.

To see Spark’s full report on CARA stock, click here.

Cara Therapeutics Announces Merger with Tvardi Therapeutics

On December 17, 2024, Cara Therapeutics announced a merger with Tvardi Therapeutics, which will see Tvardi become a wholly-owned subsidiary. The merger, expected to close in mid-April 2025, will result in the combined company being renamed Tvardi Therapeutics, Inc. and trading under Nasdaq: TVRD. This merger aims to advance Tvardi’s programs, particularly in treating idiopathic pulmonary fibrosis and hepatocellular carcinoma, with the combined entity expected to be funded into the second half of 2026.

Spark’s Take on CARA Stock

According to Spark, TipRanks’ AI Analyst, CARA is a Neutral.

Cara Therapeutics’ overall score is driven by significant financial difficulties, marked by declining revenues and persistent losses. While technical indicators show some positive momentum, the company’s poor valuation and financial instability weigh heavily on its prospects. The strategic merger with Tvardi Therapeutics, however, offers a glimmer of hope for future growth, potentially improving its market positioning and addressing unmet medical needs.

To see Spark’s full report on CARA stock, click here.

Cara Therapeutics Announces Merger with Tvardi Therapeutics

On December 17, 2024, Cara Therapeutics entered into a merger agreement with Tvardi Therapeutics, where Tvardi will become a wholly-owned subsidiary of Cara. This strategic merger aims to advance the development of Tvardi’s therapies for fibrosis-driven diseases and is expected to close in the first half of 2025. The combined entity will be renamed Tvardi Therapeutics, Inc., and will trade under the Nasdaq symbol TVRD. The merger is anticipated to enhance the company’s market positioning by focusing on unmet needs in treating diseases like idiopathic pulmonary fibrosis and hepatocellular carcinoma, with expected clinical trial data in the second half of 2025.