Luis Alvarez/DigitalVision via Getty Images Cara Therapeutics ( NASDAQ: CARA ) on Tuesday announced a reduction in the biopharmaceutical company’s workforce by about 70%. The company said it expects to complete the workforce reduction substantially by June 30 and anticipates recognizing about $2.6 million in total charges in connection with the reduction.
The costs, which will consist primarily of one-time cash charges for termination benefits, are expected to be substantially recognized in the second and third quarter of 2024, it added in a filing . Shares of the Stamford, Connecticut-based company were up nearly 3% in extended trading on Tuesday. Earlier this month, Cara said it will seek strategic alternatives after its pruritus candidate, difelikefalin, failed in a key trial.
Difelikefalin did not demonstrate a meaningful clinical benefit at any dose versus placebo in the KOURAGE-1 Part A trial. The company, in January, also said it will slash its workforce by up to 50% in a restructuring effort to extend its cash runway into 2026. More on Cara Therapeutics Cara to seek strategic alternatives after difelikefalin trial failure in pruritus Cara Therapeutics GAAP EPS of -$0.
56 misses by $0.17, revenue of $2.14M beats by $0.
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