Stifel analyst Annabel Samimy notes that CMS released their proposed 2024 update to ESRD payment rules, which will apply a three-year add-on payment adjustment period immediately post-TDAPA to provide CMS with additional usage trends and keep Korsuva priced outside the overall ESRD bundle for a period of time. Even if the proposed decrease to 65% is enacted, the firm believes that the full value of Cara Therapeutics shares based on IV-Korsuva revenues alone is “far above the current assumption implied (by) the currently trading level,” but it adds that these rules are still in the draft stages and there remains open opportunity for Cara and partners to negotiate terms before the rules are formally set. Stifel reiterates a Buy rating on Cara shares.
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