Why Is Cara Therapeutics (CARA) Stock Down 27% Today?

Core Insights - Cara Therapeutics announced disappointing results from its KOURAGE-1 study, indicating that none of the tested doses of oral difelikefalin showed meaningful clinical benefit over placebo [1][6] - Following the announcement, CARA stock experienced a significant decline of 26.7% on Thursday, contributing to a year-to-date drop of 10.6% [2][5] Company Developments - The company plans to wind down the Phase 2/3 clinical program in neuropathic pain (NP) and is exploring strategic alternatives to maximize shareholder value, which raises concerns about its future viability [6][8] - There is speculation that the company may face bankruptcy or consider selling parts or all of its business due to the poor clinical trial results [8]