Karuna Therapeutics falls on hypertension concerns for schizophrenia drug

Karuna Therapeutics

20/03/2023 15:47

(Updates)
    ** Shares of Karuna Therapeutics Inc  KRTX.O  fall 3.3% to
$185.31, shedding premarket gains
        ** Co says its lead experimental drug, KarXT,
significantly reduced symptoms of schizophrenia in a late-stage
trial
    ** While the data is good, concerns related to hypertension
for the drug are likely dragging the stock, says Guggenheim
analyst Yatin Suneja
        ** Co reports 6% patients having side-effects of
hypertension from the drug, compared to 2% in placebo arm
  
        ** Adds that will be starting a blood pressure
monitoring study for the drug next month
  
        ** If the increases in hypertension is maintained over
the period of treatment, U.S. FDA could require blood pressure
monitoring, which could have an impact on the commercial outcome
of this drug, says William Blair analyst Myles Minter
  
    ** Rival Cerevel Therapeutics Holdings Inc  CERE.O  rises
7%; CERE's schizophrenia drug is in the same class as KarXT,
with CERE's completed additional blood pressure monitoring
studies showing no sustained effect, says Minter 
    ** Co gained 50% last year

 (Reporting by Sriparna Roy)
 ((Sriparna.Roy@thomsonreuters.com;))