Cara Therapeutics and Tvardi Therapeutics Announce Entry into Merger Agreement

Core Viewpoint - Cara Therapeutics and Tvardi Therapeutics have announced a definitive merger agreement to create a Nasdaq-listed biopharmaceutical company focused on developing novel treatments targeting STAT3 for fibrosis-driven diseases [1][2] Financial Overview - Tvardi has completed approximately $28 million in private financing, which, along with existing cash and Cara's anticipated cash balance, is expected to fund the combined company into the second half of 2026 [1][3] - Upon completion of the merger, pre-merger Cara stockholders are expected to own approximately 17.0% and pre-merger Tvardi stockholders approximately 83.0% of the combined company, subject to adjustments based on Cara's net cash at closing [2] Clinical Development - Tvardi anticipates reporting topline data in the second half of 2025 from two Phase 2 clinical programs utilizing its STAT3 inhibitor, TTI-101, targeting idiopathic pulmonary fibrosis and hepatocellular carcinoma [1][3] - The ongoing REVERTIPF trial is evaluating TTI-101's safety and efficacy in patients with idiopathic pulmonary fibrosis, with unblinded data expected in the second half of 2025 [9] - The REVERTLIVER CANCER trial is assessing TTI-101 in patients with hepatocellular carcinoma, with preliminary topline data also anticipated in the second half of 2025 [9] Management and Structure - Following the merger, the combined company will be headquartered in Houston, Texas, led by Tvardi's CEO, Imran Alibhai, Ph.D., and will have a board comprised of six directors from Tvardi and one from Cara [11] Strategic Partnerships - Concurrent with the merger agreement, Cara has entered into an asset purchase agreement with CSL Vifor to sell certain assets related to Korsuva/Kapruvia for a purchase price of $900,000, along with a $3 million compensation for future expenses [4][5][6]