CARA - Cara Therapeutics: Recent Stock Price Plunge Was A Bit Exaggerated
Cara Therapeutics (CARA) recently reported the top-line results of its phase II clinical study of oral KORSUVA in patients with CKD-associated pruritus. Following the positive phase II clinical trial results, the stock price plunged for almost 35% on December 3, 2019. Our investment thesis is built around the fact that a particular plunge was exaggerated, given that the secondary endpoint of the responder rate didn’t meet statistical significance because of better than expected placebo response. Management will undergo an in-depth analysis of both patients subgroups and types of medication use to try to