RBC sees 'modest' impact on Karuna Therapeutics from Ukraine exposure, cuts PT
25/02/2022 11:55
** RBC Capital Markets lowers its price target on the stock
of drug developer Karuna Therapeutics KRTX.O to $160 from $164
as it expects the Ukraine situation to delay co's drug approval
timeline
** Half of the trial sites evaluating the co's drug, KarXT,
in an ongoing late-stage study as a potential treatment for
schizophrenia are located in Ukraine
** On Thursday, co withdrew its prior guidance for timing of
topline data from the study on KarXT, citing the continuously
evolving and worsening conditions in the region urn:newsml:reuters.com:*:nFWN2UZ2F2
** Brokerage says the Ukraine situation is likely to have a
'modest' impact on Karuna, but the company may delay its
regulatory filing and potential drug launch timelines
** Brokerage is pushing back its projected KarXT launch
timeline by 6 months
** Co said it is continuing to enroll and treat patients in
the clinical program at its sites in U.S., and will provide
updates on its sites and operations in Ukraine, as appropriate
** RBC, however, says the situation is addressable and it
continues to see promising commercial opportunity for the drug
in schizophrenia and additional indications
(Reporting by Mrinalika Roy in Bengaluru)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 8325;))