Karuna Therapeutics appoints new CEO, shares slide

Karuna Therapeutics

06/12/2022 19:09

** Shares of neurological drugmaker Karuna Therapeutics Inc
 KRTX.O  slide 11.5% to $200.84 - biggest one-day pct loss in 7
months 
    ** Company appoints former Allegran executive Bill Meury as
president and CEO, effective Jan. 3
    ** Meury succeeds Steve Paul, who will transition to the
role of chief scientific officer
    ** Brokerage RBC expects initial negative stock reaction as
some investors may view this as a signal that KRTX, a potential
M&A target, is serious about operating individually
    ** RBC says that while announcement was not expected, the
timing makes sense as co prepares for late-stage results from
its schizophrenia drug KarXT in H1 2023, begins work for future
launch
    ** Despite session's losses, shares of Karuna Therapeutics
up ~54% YTD vs 11% decline in Nasdaq Biotechnology index  .NBI 
 (Reporting by Sriparna Roy)
 ((Sriparna.Roy@thomsonreuters.com))