Cara Therapeutics, Inc. (NASDAQ: CARA) displayed some spring its step in Wednesday trading, on word the company and Vifor Fresenius Medical Care Renal Pharma entered into a deal to commercialize KORSUVA™ injection in dialysis patients with pruritus.
Cara, based out of Stamford, Connecticut, announced that it has licensed worldwide rights, except in the U.S., Japan and South Korea, to commercialize KORSUVA (CR845/difelikefalin) injection for the treatment of chronic kidney disease-associated pruritus (CKD-aP) in dialysis patients to Vifor, a joint company of Vifor Pharma Group and Fresenius Medical Care (NYSE:FMS) that specializes in treatments for CKD.
The U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy Designation to KORSUVA injection for this indication, for which there are currently no approved therapies in the U.S. or E.U.
CEO Derek Chalmers said “As a global leader in providing treatment for chronic kidney disease patients, VFMCRP is an ideal partner to bring KORSUVA injection to dialysis patients across Europe and other licensed territories.
Under the terms of the Agreement, Cara will receive an upfront payment in the amount of $50 million in cash and an equity investment of $20 million to acquire Cara common stock at a price of approximately $17/share.
Cara will also be eligible to receive additional payments of up to $470 million, which includes $30 million in regulatory and up to $440 million in tiered commercial milestones that are all sales related. Cara is also eligible to receive tiered royalties based on net sales of KORSUVA injection in the licensed territories.
Cara shares rumbled higher $1.83, or 15.8%, to $13.43 Wednesday morning.
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