CytoSorbents Corporation (CTSO): Cara-Fresenius licensing deal Vifor F...

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techxen

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Sunday, 05/27/2018 10:30:59 AM

Sunday, May 27, 2018 10:30:59 AM

Cara-Fresenius licensing deal

Vifor Fresenius Medical Care Renal Pharma (VFMCRP) which is a strategic partnership between Vifor Pharma and Fresenius Medical Care (FMC), specializing in therapies to treat renal disorders. This past Thursday they struck a license deal with Cara Therapeutics, Inc. (CARA), and CARA shares surged to close up 43% to $16.56. The deal is to commercialize Korsuva for the treatment of chronic kidney disease-associated pruritus (CKD-aP) in dialysis patients.

Under the deal Cara receives an upfront payment of $50m in cash and an equity investment of $20m to acquire Cara stock at a price of approximately $17/share. Cara will also be eligible to receive additional payments of up to $470m in milestone payments and tiered royalties based on net sales of Korsuva.

I think a deal like this is more in the cards than being acquired at this stage of the company's growth path and would be a huge boost to the stock price.