Cara loses a third of its share price on disappointing Phase II results

Connecticut, USA-based biotech firm Cara Therapeutics (Nasdaq: CARA) has suffered a massive drop in share price after announcing disappointing top-line results from a Phase IIb study of its lead candidate CR845.

The company's oral formulation of an opioid agonist is being trialled in patients with osteoarthritis of the knee or hip.

The results indicate that there was no statistically-significant impact on reported pain at the lower two doses, and only a marginal response at the higher dose.

As the prospect of gaining a share of the lucrative market for analgesics in this indication receded, traders in New York started offloading stocks in the company, causing a plus-30% drop in the share price.

All tablet strengths were generally well tolerated with no drug-related serious adverse events.

The company appeared not to have given up on the potential for the drug based on the midstage data. Chief medical officer Joseph Stauffer said: "We believe that the present trial of oral CR845 has highlighted the potential of a peripherally acting kappa agonist to provide clinical benefit in a chronic pain population.”

"The drug was observed to be well tolerated over the treatment period and this overall data set will inform both our dose selection and patient population in designing our next trial of oral CR845 in OA patients."