KRTX - Karuna initiated outperform at RBC citing potential of schizophrenia therapy
Karuna Therapeutics (KRTX) has ended the three-day winning streak to lose ~5.6% so far today despite the outperform rating initiated by RBC Capital Markets with a price target of $160.00 per share, ~27.5% upside to the previous close.The analyst Brian Abrahams and the team note the potential of the company’s lead asset KarXT, an oral modulator of muscarinic cholinergic receptors, targeting acute psychosis in patients with schizophrenia.With ‘a novel mechanism, strong data/ design,’ the experimental therapy could beat the challenges in traditional psychiatric drug development, argue the analysts, projecting a large market opportunity that exists for a differentiated entrant.Despite the ‘recent runup,’ the stock continues to underappreciate an estimated ‘$2- $3B+ long-term potential of their approach,’ write Brian Abrahams and the team.Karuna planned to initiate the first Phase 3 trial for KarXT in the treatment for acute psychosis in adults with schizophrenia, by the end of 2020.
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Karuna initiated outperform at RBC citing potential of schizophrenia therapy