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Tvardi Therapeutics Announces Proposed Merger with Cara Therapeutics

As discussed in this quarter’s executive letter, in 2024, Sower was pleased to further its relationship with Chattanooga, Tennessee-based life science venture capital firm Solas Bioventures. The two firms have collaborated to focus on life science innovations as Solas has a successful history of prioritizing products or services with significant patient outcome impacts and offers asymmetric return profiles favoring investors. The partnership leverages Solas’s expertise in early-stage biopharmaceuticals, medical devices, and digital health technologies.

An exciting example of the Sower-Solas collaboration is Tvardi Therapeutics. Tvardi is a clinical-stage biopharmaceutical company that recently made headlines with its strategic proposed merger with Cara Therapeutics. This merger aims to create a Nasdaq-listed company focused on developing novel treatments targeting STAT3 to treat fibrosis-driven diseases.

At the end of 2024, Sower participated in a $28 million private financing of Tvardi. This, combined with Cara’s anticipated cash balance, is expected to fund the new entity into the second half of 2026. The proposed merger will see Tvardi’s shareholders own 83% of the combined company, while Cara’s shareholders will hold the remaining 17%.

The combined company will operate as “Tvardi Therapeutics, Inc.” and trade on Nasdaq under the ticker symbol “TVRD”. Tvardi’s CEO, Imran Alibhai, Ph.D., expressed excitement about the merger, highlighting the access to critical funding required to advance their promising pipeline programs.

Tvardi’s lead candidate, TTI-101, is currently in Phase 2 trials for idiopathic pulmonary fibrosis and Phase 1b/2 trials for hepatocellular carcinoma. The company anticipates reporting topline data from these trials in the second half of 2025.

This proposed merger marks a significant milestone for Tvardi Therapeutics, positioning it to introduce compelling new treatment options for patients suffering from serious, chronic, fibrosis-driven diseases.

To learn more about Tvardi, please visit: https://tvarditherapeutics.com/.