H.C. Wainwright Starts Karuna Therapeutics Inc. (KRTX) at Buy

H.C. Wainwright analyst Raghuram Selvaraju initiates coverage on Karuna Therapeutics Inc. (NASDAQ: KRTX) with a Buy rating and a price target of $140.00.

The analyst commented, "We are initiating coverage of Karuna Therapeutics, a company that we believe exemplifies an emerging and disruptive set of approaches to treatment of unmet medical needs in neurology. Karuna has lit upon a way to optimize existing compounds with validated mechanisms of action by eliminating peripheral side effects. This strategy is elegantly illustrated by its lead asset, KarXT, which is a proprietary combination of xanomeline—a novel muscarinic receptor modulator originally designed and developed at Eli Lilly & Co., a multinational pharmaceutical firm with many decades of documented prowess in neuroscience-focused drug discovery and development—and trospium, which was originally approved to treat overactive bladder but which functions to quell xanomeline's off-target effects. Xanomeline generated a plethora of data from multiple Phase 1 and Phase 2 trials showing clinical utility in an array of neurological indications, yet Lilly elected to discontinue it due to safety concerns. Karuna has found a way to resuscitate the drug and render it much safer, with a relatively benign peripheral side effect profile while preserving efficacy. Thus far, Karuna has generated highly statistically significant data (p<0.0001) in a robust Phase 2 trial (n=182) of KarXT in schizophrenia patients suffering from psychosis. The company is slated to finalize the design of a pivotal program for KarXT this quarter and enter Phase 3 testing later this year. KarXT is also a pipeline in a single product candidate, with potential in treatment of cognitive and negative symptoms associated with schizophrenia as well as in dementia-related psychosis. Karuna also intends to explore the drug in treatment of pain. Our rating is Buy with a 12-month price target of $140 per share."

For an analyst ratings summary and ratings history on Karuna Therapeutics Inc. click here. For more ratings news on Karuna Therapeutics Inc. click here.

Shares of Karuna Therapeutics Inc. closed at $87.97 yesterday.

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