The full Phase 2 data for KarXT, presented over the weekend by Karuna Therapeutics, show a schizophrenia drug that is at least as effective as the standard-of-care but via a totally new mechanism and has a “much improved” tolerability profile than when studied in its prior iteration as xanomeline alone, Stifel analyst Paul Matteis tells investors in a research note. The full results show that for specific types of cholinergic adverse events – nausea, vomiting, dry mouth, constipation – reported rates on KarXT were considerably lower than observed in prior xanomeline trials, says the analyst. Matteis believes the totality of the data suggest that KarXT is “mostly derisked” as an antipsychotic drug and has blockbuster potential. The analyst has a Buy rating on the shares with a $126 price target. Karuna closed Friday up $3.74 to $93.86.
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