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Cara Therapeutics (NASDAQ: CARA) was a hot stock on Tuesday. One of the formerly clinical-stage biotech's drug candidates won FDA approval, and investors reacted in the usual manner. The shares rose by as much as 28% on the day before settling down to a sub-3% gain near market close.
Many biotechs concentrate on afflictions that are considered serious and threatening. Cara's specialty is more prosaic, although still very much in need of solutions: pruritus, i.e., abnormally itchy skin.