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Karuna Therapeutics, Inc.NasdaqGM:KRTX Stock Report

Market Cap US$12.6b
Share Price
n/a
US$326.92
n/aintrinsic discount
1Y80.7%
7D3.3%
1D
Portfolio Value
​
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Karuna Therapeutics, Inc.

NasdaqGM:KRTX Stock Report

Market Cap: US$12.6b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Karuna Therapeutics (KRTX) Stock Overview

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, creates and delivers transformative medicines for people living with psychiatric and neurological conditions. More details

KRTX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

Rewards

Trading at 78% below our estimate of its fair value

Earnings are forecast to grow 60.1% per year

Risk Analysis

Makes less than USD$1m in revenue ($654K)

Shareholders have been diluted in the past year

Volatile share price over the past 3 months


KRTX Community Fair Values

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Karuna Therapeutics, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Karuna Therapeutics
Historical stock prices
Current Share PriceUS$329.83
52 Week HighUS$329.99
52 Week LowUS$158.38
Beta1.15
1 Month Change3.64%
3 Month Change50.58%
1 Year Change80.73%
3 Year Change169.65%
5 Year Changen/a
Change since IPO1,547.50%

Recent News & Updates

Recent updates

Seeking Alpha • Feb 18

Karuna Therapeutics: Getting Sold Short

Summary Karuna Therapeutics is developing a novel product, KarXT, to treat psychoses related to Alzheimer's and schizophrenia. The product targets muscarinic receptors in an agonist/antagonist combination. Some shareholders are suing to prevent the acquisition of Karuna by Bristol-Myers Squibb. Also, the vote is outstanding. The 10% or so deal spread seems small. While the chance that the deal falls through would be bad for the short-term performance of Karuna, it may be a buying moment considering the imminent release and size of markets. Read the full article on Seeking Alpha
Seeking Alpha • Sep 09

Karuna Therapeutics: This Ship Has Sailed

Summary Karuna produced excellent data from its phase 3 trial. They have a boatload of cash. Speaking of boats, however, this ship has already sailed. Since my last coverage of Karuna Therapeutics, Inc. (KRTX) just over a year back, the stock has nearly tripled after posting strong results from its schizophrenia trial, meeting the primary endpoint of that trial. That was a month back, and even though the company took the opportunity to carry out a massive $600mn secondary, the dilution hasn’t put a dent in public enthusiasm. The stock is still going strong, although it is back down a few notches. From my previous coverage of the company, they were running a 246-patient phase 3 trial called EMERGENT-2, and 3 more phase 3 trials in the EMERGENT series, in their lead candidate KarXT in acutely psychotic patients with a DSM-5 diagnosis of schizophrenia. KarXT is a differentiated antipsychotic molecule that combines muscarinic-agonist xanomeline and muscarinic-antagonist trospium chloride together. While xanomeline works in the CNS, trospium helps avoid undesirable, cholinergic side effects that arise due to the stimulation of muscarinic receptors in peripheral tissues. The FDA has guided that “data from EMERGENT-1 [a phase 2 study], one successful Phase 3 efficacy and safety trial, and additional safety data to meet regulatory requirements would be acceptable to support NDA filing in schizophrenia.” The first two phase 3 studies were supposed to have toplined in early 2022. In August, the company announced positive data from the EMERGENT-2 trial. This was a double blind, placebo controlled trial done entirely in the United States. It enrolled 252 adult patients with a confirmed diagnosis of schizophrenia who were experiencing symptoms of psychosis. The primary endpoint was change from baseline in Positive and Negative Syndrome Scale ((PANSS)) total score, a scale for measuring schizophrenia symptom severity, of KarXT compared to placebo at Week 5. The trial resoundingly met its primary endpoint, with KarXT demonstrating a statistically significant 9.6-point reduction in PANSS Total Score compared to placebo at Week 5 (p<0.0001). The trial also met key secondary endpoints. Data include: 2.9-point reduction in the PANSS positive subscale with KarXT compared to placebo (-6.8 KarXT vs. -3.9 placebo, p<0.0001). 1.8-point reduction in the PANSS negative subscale with KarXT compared to placebo (-3.4 KarXT vs. -1.6 placebo, p=0.0055). 2.2-point reduction in the PANSS negative Marder factor subscale with KarXT compared to placebo (-4.2 KarXT vs. -2.0 placebo, p=0.0022). The PANSS scores are used to measure positive symptoms (e.g., hallucinations or delusions) and negative symptoms (e.g., difficulty enjoying life or withdrawal from others) of schizophrenia. Benefit in the negative symptoms has historically been difficult to achieve. The trial’s Cohen’s d effect size of 0.61 compares well “to that of widely used and multibillion-dollar blockbusters Risperdal and Zyprexa (about a 0.5 effect size),” according to William Blair analysts. The drug was generally well-tolerated with little differentiation from placebo. There was transient increase in heart rate, which subsided as the trial ended. Importantly, KarXT was not associated with known side effects of current treatments. As FierceBiotech noted: The clinical trial studied KarXT, a xanomeline formulation designed to address the problems that led Lilly to give up on the molecule despite generating evidence of efficacy. Lilly found the M1 agonist improved cognition in Alzheimer’s disease patients in the 1990s, only for tolerability to stop the program. Karuna sought to address the tolerability problems by giving xanomeline with a peripherally restricted molecule that blocks receptors at the root of the issues without crossing the blood-brain barrier to limit efficacy.
Seeking Alpha • Aug 08

Karuna Therapeutics GAAP EPS of -$2.17 misses by $0.10, revenue of $5.28M

Karuna Therapeutics press release (NASDAQ:KRTX): Q2 GAAP EPS of -$2.17 misses by $0.10. Revenue of $5.28M. The Company ended the quarter with $407.4 million in cash, cash equivalents and available-for-sale investment securities compared to $494.0 million as of December 31, 2021. The Company expects that current cash, cash equivalents and available-for-sale investment securities as of June 30, 2022 will enable the Company to fund its operating expenses and capital expenditure requirements for at least 12 months following the potential NDA submission of KarXT for the treatment of psychosis in adults with schizophrenia. Shares +8.29% PM.
Seeking Alpha • Jun 26

Karuna Therapeutics: Front-Running KarXT Phase 3

Treatments for schizophrenia – a truly complex disease--are plagued with a high late-stage trial failure rate. Phase 3 KarXT results will be released this quarter. It will be a binary event. Despite cash balance issues and new clinical stage competitors, market  indicators suggest that investors are re-engaged.

Shareholder Returns

KRTXUS BiotechsUS Market
7D3.3%-0.9%-2.4%
1Y80.7%25.7%21.5%

Return vs Industry: KRTX exceeded the US Biotechs industry which returned 11.7% over the past year.

Return vs Market: KRTX exceeded the US Market which returned 29.3% over the past year.

Price Volatility

Is KRTX's price volatile compared to industry and market?
KRTX volatility
KRTX Average Weekly Movement13.9%
Biotechs Industry Average Movement10.6%
Market Average Movement7.3%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.1%

Stable Share Price: KRTX's share price has been volatile over the past 3 months.

Volatility Over Time: KRTX's weekly volatility has increased from 8% to 14% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009339Bill Meurywww.karunatx.com

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, creates and delivers transformative medicines for people living with psychiatric and neurological conditions. Its lead product candidate includes KarXT, an oral modulator of muscarinic receptors for the treatment of acute psychosis in patients with schizophrenia; and for the treatment of central nervous system disorders, such as negative and cognitive symptoms of schizophrenia and psychosis, as well as for the treatment of various peripheral tissues and dementia-related psychosis, including Alzheimer's disease. The company also focuses on developing other muscarinic-targeted drug candidates; and intends to develop lead candidature TRPC4/5 and KAR-2618 for the treatment of depressive disorder.

Karuna Therapeutics, Inc. Fundamentals Summary

How do Karuna Therapeutics's earnings and revenue compare to its market cap?
KRTX fundamental statistics
Market capUS$12.58b
Earnings (TTM)-US$433.68m
Revenue (TTM)US$654.00k
Over9,999x
P/S Ratio
-29.0x
P/E Ratio

Is KRTX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
KRTX income statement (TTM)
RevenueUS$654.00k
Cost of RevenueUS$0
Gross ProfitUS$654.00k
Other ExpensesUS$434.33m
Earnings-US$433.68m

Last Reported Earnings

Dec 31, 2023

Next Earnings Date

n/a

Earnings per share (EPS)-11.37
Gross Margin100.00%
Net Profit Margin-66,311.93%
Debt/Equity Ratio0%

How did KRTX perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/03/18 06:54
End of Day Share Price 2024/03/15 00:00
Earnings2023/12/31
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Karuna Therapeutics, Inc. is covered by 17 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Caroline PalomequeBerenberg
Esther Lannie HongBerenberg
Jason Matthew GerberryBofA Global Research