2024-02-18 10:22:04 ET
Summary
- Karuna Therapeutics is developing a novel product, KarXT, to treat psychoses related to Alzheimer's and schizophrenia.
- The product targets muscarinic receptors in an agonist/antagonist combination.
- Some shareholders are suing to prevent the acquisition of Karuna by Bristol-Myers Squibb. Also, the vote is outstanding. The 10% or so deal spread seems small.
- While the chance that the deal falls through would be bad for the short-term performance of Karuna, it may be a buying moment considering the imminent release and size of markets.
Karuna Therapeutics ( KRTX ) is on the verge or releasing a novel product to the market that will eschew dopamine modulation in favor of a more sophisticated action to treat psychosis related to Alzheimer's and schizophrenia, according to our discussions with physicians and other experts in the field. Soon to be the first of its kind of treatment in the markets, development burdens outstanding are limited, and the company was moved on by one of the pharma giants for acquisition at a $13 billion or so price tag for the equity....
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Karuna Therapeutics: Getting Sold Short