Cara shares ‘highly disconnected’ from DFK potential, says H.C. Wainwright

H.C. Wainwright says the “depressed” stock price of Cara Therapeutics reflects IV Korsuva being written off and expected dilution, but gives little credit for oral difelikefalin upside. IV Korsuva is no longer an important value driver for the company, as it is all about oral difelikefalin and upcoming data catalysts, the analyst tells investors in a research note. The firm recommends investors look past IV Korsuva and focus on the opportunities for oral difelikefalin, particularly on the “underappreciated potentially very meaningful near-term data catalyst “of the AD KIND-1 Phase 3 Part A readout in December. The current “remarkably depressed” negative $37M enterprise value for Cara is “highly disconnected from oral DFK potential,” Wainwright contends. It keeps a Buy rating on the shares with a $7 price target.