Last week, Cara Therapeutics reported that its phase 2b trial of CR845, an investigational new pain relief drug for patients with Osteoarthritis of the knee or hip, had failed to meet its primary endpoint. Since then, the stock dropped from $26 to $15 a loss of over 40% of its value. Has the market over-reacted?
The primary endpoint of the study was the change in pain intensity after 8 weeks. At the start of trial, 476 patients were asked to rate their pain on a scale of 1 to 10. If CR845 is effective, then patients should give their pain a lower rating after 8 weeks using the new drug. Seems reasonable enough.
So when the Company reported that all patients who received the 5 mg dose of CR845 for 8 weeks experienced a 35% reduction