KRTX - Karuna Therapeutics Zai Lab team up for experimental psychiatric therapy in China

Karuna Therapeutics (NASDAQ:KRTX) has entered into an exclusive license agreement with Zai Lab (NASDAQ:ZLAB) for the development, production, and commercialization of KarXT (xanomeline-trospium) in Greater China. KarXT is currently undergoing studies as a potential treatment for schizophrenia and psychosis in Alzheimer’s disease. Per the terms, Zai Lab (ZLAB) will obtain exclusive rights for KarXT in countries including China, Hong Kong, Macau, and Taiwan. In return, Karuna (KRTX) will receive $35M in upfront cash payment, up to $152M in potential development and commercial milestones, and other payments in addition to low-double-digit to high-teens tiered royalties based on annual net sales of KarXT. In Q4 2021, the company expects to begin the Phase 3 ARISE trial for the treatment of adults with schizophrenia who fail to show an adequate response to standard of care.

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Karuna Therapeutics, Zai Lab team up for experimental psychiatric therapy in China