STAMFORD, Conn. - Cara Therapeutics, Inc. (NASDAQ: NASDAQ:CARA) and Tvardi Therapeutics, Inc., a privately held biopharmaceutical company, have announced a definitive merger agreement. The all-stock transaction will result in the formation of a combined entity focusing on the development of treatments for fibrosis-driven diseases. Cara enters this merger with a market capitalization of $13.7 million, trading near its 52-week low of $0.24, after experiencing a significant 66% decline year-to-date.
Under the agreement terms, Tvardi will merge with a wholly owned subsidiary of Cara, with pre-merger Cara stockholders owning approximately 17% and pre-merger Tvardi investors owning about 83% of the new company, before adjustments. The combined company will operate under the name Tvardi Therapeutics, Inc. and trade on Nasdaq with the ticker symbol TVRD. According to InvestingPro analysis, Cara's financial health score is currently rated as WEAK, though the company maintains a strong current ratio of 4.77, indicating sufficient liquid assets to meet short-term obligations.
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Tvardi recently completed a private financing round of approximately $28 million. Together with the anticipated cash balance of Cara, the merged entity is expected to have sufficient funds to operate into the second half of 2026. The companies anticipate reporting topline data from two Phase 2 clinical programs using Tvardi's STAT3 inhibitor, TTI-101, in the second half of 2025.
Concurrently with the merger agreement, Cara has entered into an asset purchase agreement with Vifor Fresenius Medical (TASE:PMCN) Care (NYSE:FMS) Renal Pharma, Ltd., selling certain assets and rights related to Korsuva®/Kapruvia® for a purchase price of $900,000, subject to adjustments.
The combined company will focus on advancing Tvardi’s pipeline, including TTI-101, currently in Phase 2 trials for idiopathic pulmonary fibrosis (IPF) and in Phase 1b/2 trials for hepatocellular carcinoma (HCC). TTI-101 is designed to inhibit STAT3, a transcription factor involved in fibrosis-driven diseases.
Post-merger, Tvardi's CEO, Imran Alibhai, Ph.D., will lead the combined company, headquartered in Houston, Texas. The board of directors will consist of six directors from Tvardi and one from Cara.
The merger, approved by both companies' boards, is expected to close in the first half of 2025, subject to stockholder approval and other customary closing conditions. Both companies will host an investor conference call and webcast today to discuss the merger. For investors seeking comprehensive analysis of this transition, InvestingPro provides detailed financial health metrics and expert insights through its Pro Research Reports, available for over 1,400 US stocks.
This news is based on a press release statement from Tvardi Therapeutics.
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