Cara Therapeutics Inc. (NASDAQ: CARA) reported a wider loss in the first quarter of 2019 due to higher costs and expenses. The bottom line was narrower than the analysts’ expectations while the top line came in above consensus estimates.
Net loss was $22 million or $0.56 per share, wider than the previous year quarter’s loss of $16.8 million or $0.51 per share. Total revenue was $4.4 million for the first quarter of 2019. There was no revenue during the prior-year quarter.
The revenue consisted of license and milestone fees revenue of $4.2 million that was recognized by the company related to its license agreement with Vifor Fresenius Medical Care Renal Pharma, and clinical compound revenue of $140,000 that was earned by the Company from the sale of the clinical compound to Maruishi Pharmaceutical.
For the first quarter, research and development expenses increased by 76% year-over-year primarily due to a net increase in clinical trial costs, as well as increases in stock compensation expense and payroll and related costs. General and administrative expenses rose by 5% primarily due to increases in legal, accounting and consultants’ costs.
Cara expects its existing cash and cash equivalents and available-for-sale marketable securities as of March 31, 2019, to be sufficient to fund its currently anticipated operating expenses and capital expenditures into the fourth quarter of 2020, without giving effect to any potential milestone payments under existing collaborations.
In the second quarter of 2019, the company initiated an additional open-label safety trial of Korsuva Injection that is expected to enroll up to 400 hemodialysis patients with chronic kidney disease-associated pruritus, or CKD-aP, for up to 12 weeks of treatment. Both of the safety trials are expected to support worldwide registration filings of Korsuva Injection.
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The company continues to enroll patients in the phase 2 trial of Oral Korsuva for the treatment of pruritus in stage moderate-to-severe chronic kidney disease, or CKD, patients. Based on current enrollment projections, the company anticipates top-line data from this trial in the second half of 2019.
After the completion of phase 1 trial of Oral Korsuva at multiple tablet strengths in patients with chronic liver disease (CLD), Cara expects to initiate a phase 2 trial for CLD patients with moderate-to-severe pruritus in the second quarter of 2019. The company intends to initiate a multi-dose, proof-of-concept phase 2 trial of Oral Korsuva in atopic dermatitis patients with moderate-to-severe pruritus around mid-year 2019.
Shares of Cara Therapeutics ended Tuesday’s regular session down 5.71% at $19 on the Nasdaq. Following the earnings release, the stock inched down over 1% in the after-market session.
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