Shares of Karuna Therapeutics Inc. soared 42.6% in premarket trading on Monday after the company said its experimental treatment for schizophrenia met the primary endpoint in a Phase 3 clinical trial. Karuna told investors it expects to submit the therapy to the Food and Drug Administration in “mid-2023.” RBC Capital Markets analyst Brian Abrahams expects the drug could generate $1.3 billion in annual sales, according to an investor note. The “profile continues to look very differentiated from existing antipsychotics, which we continue to believe along with strong efficacy will make KarXT a treatment of choice in schizophrenia,” he wrote. Karuna’s stock is up 7.1% this year, while the broader S&P 500 is down 13.0%.
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