Cara Therapeutics 8-K: Exit/Disposal Activities, Reg FD Disclosure

TL;DR

**Cara Therapeutics just flagged exit/disposal costs and Reg FD disclosure, hinting at big operational shifts.**

AI Summary

Cara Therapeutics, Inc. filed an 8-K on January 22, 2024, reporting an event that occurred on January 17, 2024, related to 'Cost Associated with Exit or Disposal Activities' and 'Regulation FD Disclosure'. This filing indicates potential restructuring or significant operational changes, which could impact future financial performance. Investors should note this as it often signals efforts to streamline operations or address underperforming assets, potentially affecting the company's profitability and stock valuation.

Why It Matters

This filing signals potential restructuring or significant operational changes at Cara Therapeutics, which could impact future financial performance and investor sentiment.

Risk Assessment

Risk Level: medium — The mention of 'Cost Associated with Exit or Disposal Activities' suggests potential financial impacts from restructuring, which can be positive or negative depending on execution.

Analyst Insight

A smart investor would monitor Cara Therapeutics' upcoming announcements for specifics on the 'Exit or Disposal Activities' to assess their financial impact and strategic rationale, as these could significantly affect future profitability and stock valuation.

Key Players & Entities

• Cara Therapeutics, Inc. (company) — the registrant filing the 8-K
• January 17, 2024 (date) — date of the earliest event reported in the 8-K
• January 22, 2024 (date) — date the 8-K was filed
• 001-36279 (other) — Commission File Number for Cara Therapeutics, Inc.
• CARA (other) — Trading Symbol for Cara Therapeutics, Inc.
• The Nasdaq Stock Market LLC (other) — exchange where Cara Therapeutics, Inc. Common Stock is registered

Forward-Looking Statements

• Cara Therapeutics will provide more details on the 'Exit or Disposal Activities' in its next quarterly report. (Cara Therapeutics, Inc.) — medium confidence, target: Q1 2024 Earnings Report
• The 'Regulation FD Disclosure' relates to a material non-public information shared with specific parties. (Cara Therapeutics, Inc.) — high confidence, target: Immediate

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share CARA The Nasdaq Stock Marke
• $2.5 million — Company anticipates recognizing between $2.5 million and $3 million in total charges in the
• $3 million — es recognizing between $2.5 million and $3 million in total charges in the first quarter o

Filing Documents

• tm243779d1_8k.htm (8-K) — 32KB
• tm243779d1_ex99-1.htm (EX-99.1) — 18KB
• tm243779d1_ex99-1img001.jpg (GRAPHIC) — 5KB
• 0001104659-24-005579.txt ( ) — 235KB
• cara-20240117.xsd (EX-101.SCH) — 3KB
• cara-20240117_lab.xml (EX-101.LAB) — 33KB
• cara-20240117_pre.xml (EX-101.PRE) — 22KB
• tm243779d1_8k_htm.xml (XML) — 3KB

05

Item 2.05. Costs Associated with Exit or Disposal Activities. On January 17, 2024, in connection with a review of the company's strategic priorities, the Board of Directors of Cara Therapeutics, Inc. (the "Company") approved a strategic reprioritization to focus the Company's resources on the Company's late stage clinical program evaluating oral difelikefalin in pruritus associated with notalgia paresthetica, and approved the termination of the Company's Phase 3 clinical program evaluating oral difelikefalin in pruritus associated with advanced chronic kidney disease, including the termination of the ongoing KICK 1 and KICK 2 clinical trials. In connection with the termination of the oral chronic kidney disease program, the Board of Directors also approved a reduction in the Company's workforce, which the Company expects to substantially complete by January 31, 2024. The Company anticipates recognizing between $2.5 million and $3 million in total charges in the first quarter of 2024 in connection with the reduction in force. These charges will consist primarily of one-time cash charges for termination benefits.

01. Regulation

Item 7.01. Regulation FD Disclosure. On January 22, 2024, the Company issued a press release (the "Press Release") announcing its strategic reprioritization plan and the reduction in force. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference to this Item 7.01. The information furnished under this Item 7.01, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any of the Company's filings with the Securities and Exchange Commission under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such a filing.

01. Other

Item 8.01. Other Information. After giving effect to the strategic reprioritization and reduction in force described herein, the Company now expects that its capital resources will be sufficient to fund its currently anticipated operating plan into 2026. On January 22, 2024, the Company also announced that Frdrique Menzaghi, Ph.D., Chief Scientific Officer and SVP of Research & Development, will depart the Company, effective February 2, 2024.

Forward-Looking Statements

Forward-Looking Statements historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of these forward-looking statements include statements concerning the Company's strategic plans to focus its resources on the development of oral difelikefalin for the treatment of pruritus associated with notalgia paresthetica and to discontinue the development of oral difelikefalin in advanced chronic kidney disease, the expected costs of the reduction in force and the timing of recognition of such charges, and the Company's cash runway. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include the risks inherent in the clinical and regulatory development of pharmaceutical products, and the risks described more fully in Cara Therapeutics' filings with the Securities and Exchange Commission, including the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ending December 31, 2022 and its other documents subsequently filed with or furnished to the Securities and Exchange Commission, including its Form 10-Q for the quarter ended September 30, 2023. All forward-looking statements contained in this report speak only as of the date on which they were made. Cara Therapeutics undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Press Release dated January 22, 2024 104 Cover page interactive data file (formatted as Inline XBRL) 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CARA THERAPEUTICS, INC. By: /s/ RYAN MAYNARD Ryan Maynard Chief Financial Officer (Principal Financial and Accounting Officer) Date: January 22, 2024 3

View Full Filing

View this 8-K filing on SEC EDGAR