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KarXT is a novel antipsychotic medication being developed by Karuna Therapeutics, focusing on M1 and M4 muscarinic receptors.
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It has the potential to address both positive and negative symptoms of schizophrenia with a potentially more favorable side effect profile than existing treatments.
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The Phase 3 EMERGENT-3 trial showed statistically significant and clinically meaningful improvements, but high TEAE and discontinuation rates warrant further investigation.
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Karuna Therapeutics plans to submit a U.S. marketing application for KarXT in mid-2023, aiming for a market launch in the second half of 2024.
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Despite promising results, investors should be cautious as more comprehensive data and additional research are required to validate KarXT’s safety, tolerability, and long-term effectiveness. Karuna is a “Hold”.
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The pricing for KarXT is currently unknown, but existing antipsychotic medications can [range] from $340 to $1,400 per month, depending on factors like the specific drug and dosage. For our projection, let’s assume a conservative average monthly cost of $500 for KarXT.
Based on these assumptions, the annual revenue from 280,000 patients in the U.S. market would be $1.68 billion. This estimate only takes into account the U.S. market and a 10% market share. The potential revenue could be higher if KarXT gains a larger market share, has a higher price, or expands into other global markets.