CARA - Cara Therapeutics Announces up to $40.0 Million Non-Dilutive Financing Agreement with HealthCare Royalty | Benzinga
Transaction supports progression of late-stage oral difelikefalin clinical programs
Non-dilutive capital expected to extend cash runway into 2025
STAMFORD, Conn., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Cara Therapeutics, Inc. (NASDAQ:CARA), a commercial-stage biopharmaceutical company leading a new treatment paradigm to improve the lives of patients suffering from pruritus, today announced it has entered into a Royalty Interest Purchase and Sale Agreement (the agreement) with HealthCare Royalty (HCRx).
Cara intends to use the proceeds from the agreement to support the ongoing clinical development of its oral difelikefalin pipeline, including late-stage programs for pruritus associated with atopic dermatitis, advanced chronic kidney disease, and notalgia paresthetica.
"This non-dilutive capital strengthens our balance sheet and fuels the continued advancement of our three late-stage oral difelikefalin clinical programs," said Christopher Posner, President and Chief Executive Officer of Cara Therapeutics. "Importantly, this financing is expected to extend our cash runway into 2025."
Under the terms of the agreement, Cara will receive an initial payment of $17.5 million, less certain expenses. Cara will receive an additional payment of $20.0 million upon Kapruvia® (difelikefalin) receiving a certain minimum price in Germany, which is expected to occur this quarter. In addition, if KORSUVA achieves certain specified 2024 performance levels in Japan, Cara will receive a $2.5 million milestone payment. In exchange, HCRx will receive all royalties due to Cara from KORSUVA® (difelikefalin) injection / Kapruvia® ex-U.S. license agreements with CSL Vifor and Maruishi Pharmaceutical Co., Ltd. ...