Cara Therapeutics Inc. (NASDAQ: CARA), a Stamford-headquartered commercial-stage biopharmaceutical company focused on creating a new treatment paradigm to improve the lives of patients suffering from pruritus, has entered into a royalty interest purchase and sale agreement with HealthCare Royalty (HCRx), also based in Stamford.
Under the terms of the agreement, Cara will receive an initial payment of $17.5 million, less certain expenses and will receive an additional payment of $20 million when its drug Kapruvia (difelikefalin) receives a certain minimum price in Germany, which is expected to occur this quarter. In addition, if Korsuva, another Cara treatment, achieves certain specified 2024 performance levels in Japan, Cara will receive a $2.5 million milestone payment.
In exchange, HCRx will receive all royalties due to Cara from Korsuva injection / Kapruvia ex-U.S. license agreements with CSL Vifor and Maruishi Pharmaceutical Co. Ltd. The arrangement with HCRx specifically excludes Korsuva injection in the U.S. and all of Cara’s oral difelikefalin internal development programs.
Cara intends to use the proceeds from the agreement to support the ongoing clinical development of its oral difelikefalin pipeline, including late-stage programs for pruritus associated with atopic dermatitis, advanced chronic kidney disease, and notalgia paresthetica.
“This non-dilutive capital strengthens our balance sheet and fuels the continued advancement of our three late-stage oral difelikefalin clinical programs,” said Christopher Posner, president and CEO of Cara Therapeutics. “Importantly, this financing is expected to extend our cash runway into 2025.”
The aggregate royalty payments to HCRx are capped at 2.0x the payments to Cara if received before the end of 2029. Otherwise, the payments are capped at 2.8x after which Cara will resume receiving all royalties from both CSL Vifor and Maruishi.
