For the first time in more than half a century, there is a new approved drug for schizophrenia.

‍What’s happening:‍

  • PureTech Health (NASDAQ: PRTC) has received an official approval from the United States Food and Drug Administration for their novel therapeutic KarXT for the treatment of schizophrenia in adults

Why it matters:‍

  • This is the first new drug approval for schizophrenia in more than 50 years and represents a significant breakthrough in being able to effectively treat individuals suffering from schizophrenia

Going deeper:‍

  • PureTech Health originally developed their KarXT therapeutic for schizophrenia within their subsidiary Karuna Therapeutics prior to ultimately selling Karuna Therapeutics to Bristol Myers Squibb (NYSE: BMY) as part of a revenue sharing and royalty deal that will allow the drug to be distributed by Bristol Myers Squibb
  • PureTech Health also has an existing deal with Royalty Pharma (NASDAQ: RPRX) for their subsidiary Karuna Therapeutics that has certain milestone payments around commercial milestones and regulatory approvals
  • Bristol Myers Squibb will distribute and sell the new therapeutic under the name Cobenfy in the United States of America

By the numbers:‍

  • The new approval from the United States Food and Drug Administration unlocks $29M USD in payments to PureTech Health form Royalty Pharma

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