Mizuho Sees Compelling Risk/Reward For Schizophrenia Stock Karuna Despite Recent Weakness

 

• Yesterday, Karuna Therapeutics Inc 
  KRTX+2.27%+ Free Alerts
   highlighted progress across the ongoing and planned clinical programs of KarXT, with a primary focus on the planned Phase 3 program evaluating KarXT for psychosis in Alzheimer's disease.
• Mizuho believes Karuna management did a commendable with laying out the data supporting their decision to move their lead asset KarXT forward in Alzheimer's disease psychosis (ADP).
• The analysts believe that the asset should help mitigate side effect concerns as they move more fully into an elderly population. 
• Mizuho noted that a review of the previously-published Phase 2 data from Eli Lilly And Co 
  LLY+2.10%+ Free Alerts
   illustrated the impact higher doses of xanomeline alone could have on treating and preventing various Alzheimer's associated psychotic symptoms.
• The analysts are encouraged by Karuna's work to expand the KarXT opportunity beyond schizophrenia. 
• The topline data expected in 3Q22 from the pivotal EMERGENT-2 trial in schizophrenia remains the focus of investor conversations. 
• Mizuho believes investor expectations remain relatively high that KarXT will be able to deliver the necessary efficacy in EMERGENT-2, with perhaps more questions on how the safety profile will look in this initial Phase 3 trial.

https://www.benzinga.com/analyst-ratings/analyst-color/22/05/27425180/mizuho-sees-compelling-riskreward-for-this-schizophrenia-stock-despite-recent-weakn