Cara Therapeutics tried to misdirect investors away from the failure of its osteoarthritis pain pill by burying negative results from a mid-stage clinical trial in the middle of a press release issued Thursday night. The ploy didn’t work. Cara shares plunged, with the stock trading down 30 percent to $17.99 this morning.
The lesson here: Read those clinical trial press releases slowly and carefully! Don’t get bamboozled.
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Another lesson in how companies spin is when they set the bar so low, i.e., calling it a “safety study,” then go p-hacking/cherry picking for something positive to report. Worse still are fudged data.
Not necessarily negative. The results show they are on the right track but need to try a higher dose. 5 mg dose compared to other meds is still low. Foolish downgrade IMO