Cara Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in total revenue, which fell to $2.6 million for Q3 2024, down 47% from $4.9 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $5.7 million, a decrease of 68% compared to $18.0 million in the same period the previous year. This decline was primarily attributed to reduced collaborative revenue from KORSUVA injection sales, which dropped from $10.1 million in the first nine months of 2023 to $2.1 million in 2024.
The company's operating expenses also decreased significantly, totaling $8.5 million in Q3 2024 compared to $33.8 million in Q3 2023. This reduction was largely due to workforce reductions and the discontinuation of several clinical programs, including the oral difelikefalin program for notalgia paresthetica, which was halted after the KOURAGE-1 study showed no meaningful clinical benefit. The company implemented a streamlined operating plan, resulting in a workforce reduction of approximately 70% by June 2024.
Despite these cost-cutting measures, Cara Therapeutics reported a net loss of $12.5 million for Q3 2024, a decrease from a net loss of $28.0 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $63.2 million, down from $86.2 million in the same period in 2023. The accumulated deficit as of September 30, 2024, stood at $747.9 million.
The company’s cash and cash equivalents decreased to $37.1 million as of September 30, 2024, from $51.8 million at the end of 2023. Total current assets also fell sharply to $47.9 million from $116.2 million. In terms of liabilities, total liabilities decreased to $50.6 million from $68.8 million at the end of 2023.
Strategically, Cara Therapeutics entered into a Purchase and Sale Agreement in November 2023, selling future royalties and milestone payments related to KORSUVA and Kapruvia for up to $40 million. The company received $17.5 million in November 2023 and an additional $20 million in December 2023 upon achieving a milestone for Kapruvia pricing approval in Germany.
As of September 30, 2024, the company faced compliance issues with Nasdaq, having shareholders' equity of only $0.7 million, below the required $2.5 million. The company is exploring options to regain compliance, including a potential reverse stock split.
About Cara Therapeutics, Inc.
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