With Cara's shares tanking, it's obvious that investors are focused more on the failure of Oral Korsuva to achieve the secondary endpoints of the phase 2 study than on the drug's success in meeting the primary endpoint.
Today's plunge for Cara underscores that investors in biotech stocks always need to read beyond the headlines with drugmakers' clinical updates.


Stock Advisor launched in February of 2002. So far today, 1.23 million shares of Cara have traded, well above the company's 30-day average of about 391,000 shares. Neither did the drug achieve statistically significant improvement for patients on the 1 mg dose in increasing itch-related quality-of-life endpoints on a couple of self-assessment scales. Action Alerts PLUS is a registered trademark of TheStreet, Inc. The treatment effect was statistically valid at week 2 and was sustained through the 12-week period. Cara stated that this result "was statistically significant after two weeks of treatment and sustained through the 12-week treatment period.". A key secondary endpoint, the proportion of patients receiving 1 mg who achieved at least a three-point improvement from baseline in the weekly average daily WI-NRS scores at week 12, was not met (72% vs. 58%). A Phase 2 clinical trial evaluating Cara Therapeutics' (NASDAQ:CARA) Korsuva (difelikefalin) (formerly CR845) for the treatment of pruritus …

Cumulative Growth of a $10,000 Investment in Stock Advisor, Why Cara Therapeutics Stock Is Plunging Today @themotleyfool #stocks $CARA, Cara Therapeutics Inc (CARA) Q2 2020 Earnings Call Transcript, Better Buy: GW Pharmaceuticals vs. Cara Therapeutics, Cara Therapeutics Inc (CARA) Q1 2020 Earnings Call Transcript, Better Buy: Cara Therapeutics vs. Sangamo Therapeutics, Cara Therapeutics Reports Success for Korsuva in Pivotal Trial, Copyright, Trademark and Patent Information. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life.

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Cara said that Oral Korsuva met the primary endpoint of the study -- a statistically significant reduction in mean worst itching intensity numeric rating scale (WI-NRS) score after a 12-week treatment period. TheStreet Ratings rates this stock as a "sell" with a ratings score of D. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. The trial was halted after some patients exceeded a certain level of serum sodium levels, which triggered a stopping rule, Cara said in a statement on Thursday.

However, the drug didn't meet two secondary endpoints. Now read: Axsome's AXS-12 achieves primary endpoint in mid-stage narcolepsy study; shares up 6% premarket », Axsome's AXS-12 achieves primary endpoint in mid-stage narcolepsy study; shares up 6% premarket ». A Phase 2 clinical trial evaluating Cara Therapeutics' (NASDAQ:CARA) Korsuva (difelikefalin) (formerly CR845) for the treatment of pruritus (itchy skin) in patients with moderate-to-severe chronic kidney disease (CKD) met the primary endpoint.

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