KRTX stock is having its biggest one-day gain and has hit a new high after Karuna Therapeutics Inc (NASDAQ:KRTX) announced positive results from a Phase 2 clinical trial evaluating KarXT in schizophrenic patients with acute psychoses.
Investors Cheer the News
Whenever a pharmaceutical or therapeutics firm announces positive news with regards to any of its products in the pipeline, there is almost always a positive effect on the stock. That is what happened with KRTX stock this morning after Karuna Therapeutics revealed highly encouraging results from the Phase 2 clinical study of its product KarXT. The medicine is meant to treat patients who suffer from extreme psychoses originating out of schizophrenia.
The important thing to point out with regards to the clinical study results is the fact that the medicine managed to meet the primary endpoint. Additionally, it also caused a statistically significant improvement in a scale known as PANSS. It should also be noted that KarXT also met the secondary endpoints, and it goes without saying that this is a highly encouraging sign.
KRTX stock rose by as much as 228% at $58 after the news emerged and is definitely one of the stocks to watch out for throughout the day.
The rally in the stock is not surprising at all, considering the implication of such a product. The Chief Executive Officer of the company, Steve Paul, stated that the schizophrenia treatment space has remained largely stagnant for many decades.
The addition of a medicine like KarXT could prove to be a major breakthrough for the space. He went on to add, “KarXT and its novel muscarinic receptor mechanism of action represent the potential to become a true advancement in how schizophrenia is treated.” The medicine in question is supposed to be administered orally. It has been made from a combination of trospium and xanomeline.
Karuna Therapeutics has targeted Q2 2020 for the review of the data with the Food and Drug Administration. The company intends to launch the Phase 3 clinical trial by the end of next year. The management is also going to host a conference call with regards to the developments this morning.
KRTX stock made an all-time high of $64.99 earlier in the session.
Featured image: DepositPhotos © AndreyPopov