On November 2, 2023, Karuna Therapeutics Inc (KRTX, Financial), a biopharmaceutical company focused on developing transformative medicines for psychiatric and neurological conditions, announced its financial results for the third quarter of 2023.
Financial Highlights
The company reported a net loss of $119.1 million for Q3 2023, compared to a net loss of $77.0 million for the same period in 2022. The increase in net loss was primarily driven by research and development expenses related to the company’s ongoing KarXT clinical programs, pre-commercialization activities, increased employee headcount, and higher stock-based compensation.
Research and development expenses were $104.0 million for Q3 2023, compared to $62.0 million for the same period in 2022. General and administrative expenses were $32.3 million for Q3 2023, compared to $19.1 million for the same period in 2022.
The company ended the quarter with $1.3 billion in cash, cash equivalents, and available-for-sale investment securities, compared to $1.1 billion as of December 31, 2022. The increase was primarily the result of the completion of the company’s follow-on public offering in March 2023, which resulted in net proceeds of $436.7 million.
Business Updates
During the quarter, Karuna Therapeutics Inc (KRTX, Financial) submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for KarXT for the treatment of schizophrenia. The company also initiated the Phase 3 ADEPT-2 and ADEPT-3 trials evaluating KarXT for the treatment of psychosis in Alzheimer’s disease.
“The third quarter was highlighted by our NDA submission to the FDA for KarXT for the treatment of schizophrenia, a significant milestone for Karuna, as well as for patients living with this serious mental illness,” said Bill Meury, president and chief executive officer of Karuna Therapeutics.
The company anticipates the potential approval and launch of KarXT in the U.S. in the second half of 2024. In addition to its primary indications in schizophrenia and Alzheimer’s disease, the company is also focused on building its pipeline with potential new opportunities for KarXT, as well as advancing other early-stage compounds across a broad range of neuropsychiatric conditions.
Explore the complete 8-K earnings release (here) from Karuna Therapeutics Inc for further details.
