27th Sep 2024 11:30
(Alliance News) - PureTech Health PLC on Friday said KarXT has received US Food & Drug Administration approval for treating schizophrenia.
The Boston, Massachusetts-based biotechnology company said the milestone triggers payments to it totalling USD29 million under agreements with Royalty Pharma and Karuna Therapeutics, which PureTech sold to Bristol Myers Squibb in March.
Bristol Myers Squibb will market KarXT as Cobenfy.
It is "the first new drug mechanism approved in over 50 years for the treatment of schizophrenia in adults", PureTech said.
Under these agreements, PureTech is also entitled to potential future payments related to additional milestones as well as approximately 2% royalties on net annual sales over USD2 billion.
PureTech Co-Founder & President Eric Elenko said: "We are immensely proud that our dedication to this program has led to the first major innovation in decades for those living with schizophrenia, and I am equally pleased that our unique approach to R&D has delivered yet another novel therapeutic to patients."
PureTech Health shares rose 4.3% to 156.80 pence each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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