Home Cannabis Cara Therapeutics: A Financial Overview in January

Cara Therapeutics: A Financial Overview in January

Revenue trends

In the first nine months of 2018, Cara Therapeutics (CARA) generated revenues of $7.9 million—compared to $911,000 during the same period the previous year. In the third quarter, Cara Therapeutics’ net revenues were $5.1 million.

In the first nine months of 2018, Cara Therapeutics generated revenues of $7.9 million from licenses and milestone payments. In the third quarter, the company’s revenues from licenses and milestone payments were $5.0 million.

CARA

Analysts expect Cara Therapeutics to generate revenues of $2.7 million in the fourth quarter. Analysts expect the company’s net revenues in fiscal 2018 to be ~$10.60 million. Analysts expect Cara Therapeutics’ net revenues in fiscal 2019 to be ~$11.21 million, which represents ~5.73% YoY growth.

Among Cara Therapeutics’ peers in the cannabis drug market, GW Pharmaceuticals (GWPH) reported revenues of $12.74 million in fiscal 2018. INSYS Therapeutics reported net revenues of $18.35 in the third quarter. Analysts expect INSYS Therapeutics to report net revenues of $83.74 million in fiscal 2018.

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Cara Therapeutics, GW Pharmaceuticals, and INSYS Therapeutics’ revenue growth are expected to boost the ETFMG Alternative Harvest ETF’s (MJ) revenue growth. Cara Therapeutics, GW Pharmaceuticals, and INSYS Therapeutics account for ~1.52%, ~5.95%, and 1.64% of MJ’s total portfolio holdings.

Expense trends

In the first nine months of 2018, Cara Therapeutics reported R&D (research and development) and G&A (general and administrative) expenses of $52.7 million and $10.6 million, respectively—compared to $36.9 million and $8.9 million during the same period the previous year.

In the third quarter, Cara Therapeutics’ net operating expenses were $25.5 million—compared to $13.0 million in the third quarter of 2017. Analysts expect the company’s R&D and G&A expenditure to be ~$3.8 million and $22.02 million, respectively, in the fourth quarter. Analysts expect Cara Therapeutics’ net R&D and SG&A expenditure in fiscal 2018 to be ~$14.4 million and $74.8 million, respectively.

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