For the first time in more than half a century, there is a new approved drug for schizophrenia.
What’s happening:
- PureTech Health (NASDAQ: PRTC) has received an official approval from the United States Food and Drug Administration for their novel therapeutic KarXT for the treatment of schizophrenia in adults
Why it matters:
- This is the first new drug approval for schizophrenia in more than 50 years and represents a significant breakthrough in being able to effectively treat individuals suffering from schizophrenia
Going deeper:
- PureTech Health originally developed their KarXT therapeutic for schizophrenia within their subsidiary Karuna Therapeutics prior to ultimately selling Karuna Therapeutics to Bristol Myers Squibb (NYSE: BMY) as part of a revenue sharing and royalty deal that will allow the drug to be distributed by Bristol Myers Squibb
- PureTech Health also has an existing deal with Royalty Pharma (NASDAQ: RPRX) for their subsidiary Karuna Therapeutics that has certain milestone payments around commercial milestones and regulatory approvals
- Bristol Myers Squibb will distribute and sell the new therapeutic under the name Cobenfy in the United States of America
By the numbers:
- The new approval from the United States Food and Drug Administration unlocks $29M USD in payments to PureTech Health form Royalty Pharma
