Canaccord Genuity Downgrades Cara Therapeutics (CARA) to Hold

Canaccord Genuity analyst Sumant Kulkarni downgraded Cara Therapeutics (NASDAQ: CARA) from Buy to Hold with a price target of $1.00 (from $10.00).

The analyst comments: "After the close today (6/12), CARA announced that oral difelikefalin (DFK) did not demonstrate meaningful clinical benefit vs. placebo at any dose as part of the dosefinding Part A of its KOURAGE Phase 3 study for DFK in notalgia paresthetica (NP). As such, the company is discontinuing its program in NP and will be exploring strategic alternatives. We had noted the unpredictable nature of trials involving pruritus (see here). But, we are still somewhat surprised by this clearly negative outcome in NP as oral DFK's mechanism targets the neurological basis of itch, which is thought to play a key role in this indication (vs. some other forms of pruritus that have less of a neurological component, for example). Recall Phase 2 proof-of-concept data from the KOMFORT trial for oral DFK in NP were promising enough to warrant publication in the prestigious New England Journal of Medicine."

For an analyst ratings summary and ratings history on Cara Therapeutics click here. For more ratings news on Cara Therapeutics click here.

Shares of Cara Therapeutics closed at $0.68 yesterday.

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