Summary
Cara Therapeutics just entered critical stage III testing with its key drug Korsuva.
A German company paid $50 million for rights to distribute what could be a blockbuster drug outside of the United States, Japan and South Korea. Other potential partners are likely.
Lately, pot stocks are being heavily purchased. However, Cara Therapeutics is one of the few cannabis companies whose stock has not been overbought.
I am continuing to add companies into my own private portfolio. This portfolio is geared towards cannabis pharmaceuticals. I believe there is significant upside in this sector. Cara Therapeutics (CARA) has hit my radar as a company with tremendous opportunities. Currently, the company has begun the critical Phase 3 trials of their key drug that has the potential to become a blockbuster drug (Sales exceeding $1 billion), and the FDA has given the drug a Breakthrough Therapy designation.
Previously, Cara had used the drug to test on two different pain conditions. There were results in one area that showed some efficacy but on the other condition, the results were insignificant; from that, the stock sold off. I think this was short-sighted disappointment. Since then, because the drug has begun the critical Phase 3 trials for a certain condition, and shows promise, the stock is trending upward. I think the recent movements have been muted when considering the possibilities. I suspect with the potential this drug has the stock could move significantly higher. I am adding this to my portfolio.
