Cara Therapeutics To Merge With Tvardi Therapeutics In All-Stock Deal, Stock Up In Pre-Market

Cara Therapeutics

0.26 CHF -62.06%

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Kaufen / Verkaufen

(RTTNews) - Cara Therapeutics, Inc. (CARA), Wednesday announced that the company has entered into a merger agreement with Tvardi Therapeutics, Inc., a clinical-stage biopharmaceutical company.

Under the all-stock deal, pre-merger Cara stockholders will own approximately 17 percent of the combined company, while pre-merger Tvardi investors are expected to own around 83 percent.

Upon closing of the deal, the combined company would operate under the name Tvardi Therapeutics, Inc. and trade on Nasdaq under the ticker symbol "TVRD".

The combined company, to be led by Tvardi's CEO Imran Alibhai, will focus on developing Tvardi's pipeline targeting STAT3 to treat fibrosis-driven diseases with significant unmet needs, including its lead candidate, TTI-101.

Cara said the combined financing is expected to be sufficient to fund its operating expenses and capital expenditure requirements into the second half of 2026.

The transaction is scheduled to complete in the first half of 2025.

Concurrently with the merger deal, Cara has also agreed to an asset purchase agreement with Vifor Fresenius Medical Care Renal Pharma, Ltd., a company jointly owned by Fresenius Medical Care and by the CSL Vifor business unit of the CSL Group.

As per the asset purchase deal, CSL Vifor will acquire certain assets and rights to the development, manufacture, and commercialization of Korsuva/Kapruvia as well as certain associated liabilities from Cara for a purchase price of $900,000.

Further, Cara has agreed to pay $3,000,000 to compensate CSL Vifor for the estimated incremental future expenses to be incurred as a result of the transfer of the assets to be acquired and the liabilities.

During the pre-market hours, Cara's stock is climbing 11.35 percent, to $0.27 on the Nasdaq.