24/7 Market News Snapshot 18 December, 2024 – Cara Therapeutics, Inc. (NASDAQ:CARA)

December 18, 2024

DENVER, Colo., 18 December, 2024 (247marketnews.com) – (NASDAQ:CARA) are discussed in this article.
Cara Therapeutics, Inc. has seen a significant increase in market activity, trading at $0.258 in pre-market sessions, marking a 3.32% rise from the previous close of $0.250. With a trading volume of 5.44 million shares, this uptick reflects heightened investor interest in the company. The technical indicators suggest bullish sentiment, reinforced by the increased volume that often signals the strength of this upward price trend. Investors are advised to keep an eye on key resistance levels and overall market conditions while assessing the sustainability of this bullish performance in CARA’s stock.

In a strategic move to enhance its clinical stage prospects, Cara Therapeutics has entered into a definitive merger agreement with Tvardi Therapeutics, Inc. This all-stock merger aims to create a strong Nasdaq-listed entity focused on developing innovative treatments targeting STAT3 for fibrosis-driven diseases. The structure of the transaction indicates that pre-merger Cara shareholders will own about 17% of the combined organization, while Tvardi investors will retain approximately 83%. After the merger, the united company will operate under the name Tvardi Therapeutics, Inc., listed on Nasdaq with the ticker symbol “TVRD.”

Dr. Imran Alibhai, CEO of Tvardi, stated that this merger represents a vital opportunity to advance their clinical pipeline, particularly the Phase 2 programs centered on their lead STAT3 inhibitor, TTI-101. With a recent infusion of approximately $28 million in private financing and the anticipated cash reserves from both firms, the combined entity is positioned to be well-capitalized through mid-2026 to support its ongoing clinical endeavors.

Christopher Posner, President and CEO of Cara, highlighted that the merger aligns with both companies’ strategic interests, enabling resource pooling to pursue innovative treatment solutions. As part of the merger strategy, Cara has arranged an asset sale agreement for its approved pruritus treatment, thereby allowing a focused approach post-merger. This merger is expected to conclude in the first half of 2025, pending stockholder approval and other conditions, positioning both companies to tackle significant unmet medical needs in critical therapeutic areas.

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