Karuna Therapeutics rises as JPM starts coverage with 'overweight' on lead drug potential

Hanall Biopharma

30/09/2021 19:47

** Shares of biopharma co  KRTX.O  rise as much as 5.2% to a
four-week high of $125 
    ** J.P. Morgan starts coverage with "overweight" rating and
$162 PT, which represents a 36.3% upside to the stock's last
close
    ** Co's lead drug, KarXT, is currently being tested in
late-stage studies for adults with schizophrenia
    ** Brokerage says if the studies are successful, KarXT has
the potential to improve efficacy, tolerability profiles in
patients, thereby changing schizophrenia treatment landscape
    ** Brokerage expects KRTX to begin generating product sales
in 2024, maintain worldwide rights for KarXT  
    ** JPM estimates co has sufficient capital to sustain
development of its late-stage trials; KRTX had $543.6 million in
cash at Q2-end  urn:newsml:reuters.com:*:nBw6zDG52a 
    ** Eight of 16 brokerages rate the stock "strong buy", the
other 8 rate it "buy"; their median PT is $158 - Refinitiv data
    ** Including session gains, stock up ~22.4% 
    

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))