Cara Therapeutics Inc (NASDAQ: CARA) soared another 14% on Tuesday, with the stock now up 50% in the last two weeks. The jump came following S&P Dow Jones Indices’ announcement that Carat Therapeutics will tale MTS Systems’ S&P SmallCap 600 index place.
The gain makes sense since the S&P Dow Jones Indices’ announcement means ETFs or mutual funds tracking the S&P SmallCap 600 index can load up on Cara Therapeutics shares. Notably, the boost from the addition to the index is temporary. After funds purchase Cara shares, its fortunes will rely on the performance of its business.
But there are positives considering the company and Vifor Pharma, its partner, had announced early last month that the US FDA had accepted its NDA for Korsuva injection for pruritus treatment in hemodialysis patients. The NDA received Priority Review, which will shorten the review process. The FDA’s Korsuva approval decision will be on August 23, which is the only catalyst for the stock. The company will report its phase 2 study data for oral Korsuva in the coming months, making the stock worth watching.
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