Founded in 2004, Cara Therapeutics is a biopharmaceutical company that focuses on providing products with a new approach to reduce acute pain, chronic pain and pruritus mostly based on kappa opioid receptors.
The company wants to revolutionise the pain management industry that hasn’t changed for over 50 to 100 years. Cara Therapeutics is working on new products that avoid the side effects that existing drugs have cultivated for years, such as morphine, ibuprofen, and acetaminophen.
The clinical-stage biotechnology company is considered to be a marijuana stock because it is working on cannabinoid (CB) receptors to influence patients’ pain and inflammatory responses. The company has developed an experimental drug called CR701, which is a cannabinoid drug that might greatly help treat chronic pain without the addictive side-effects associated with other painkillers.
Even though this product is only in its pre-clinical development stage at the moment, it is the most advanced cannabis-based compound of the company. In fact, it has the strong potential to positively impact Cara’s role in the medicinal marijuana space.
Trading Cara Therapeutics
- According to cannabis investment and market research firm, The ArcView Group, North American legal recreational and medicinal marijuana sales increased 34% in 2016 to $6.9 billion. Could this be the tip of the iceberg? Possibly so, as the public’s opinion on pot is changing. People and companies are now accepting the use of recreational marijuana, which should benefit the company’s sales and stock price.
- In May 2018, Cara Therapeutics and Vifor Fresenius Medical Care Renal Pharma (VFMCRP) partnered to develop and sell an injection for chronic kidney diseased-associated pruritus. This news strongly supported Cara’s stock price, as investors saw a promising partnership bringing Cara’s KORSUVA injection to dialysis patients. After all, it is something that the largest dialysis provider in the world was interested in – partnering with a small clinical-stage biotech like Cara!
- Cara Therapeutics’ drug development, called its pipeline, looks promising with some of their drugs being in their U.S. phase 3 trial such as the KORSUVA Injection. If the company’s products are proven to be successful in treating targeted pains, the stock price of the firm could strongly jump over in the next couple of years.
Investing in drug developer companies like Cara Therapeutics might be a smart investment. It looks like several investors are looking to take advantage of this fast-growing marijuana industry through products that are using CB receptors to reduce pain.