The latest financing round will boost the study of KarXT, Karuna’s lead product candidate, which is currently in Phase II development as a potential treatment for acute psychosis in patients with schizophrenia.
Days after Boston-based Karuna Pharmaceuticals announced it had hired two Eli Lilly veterans to fill executive leadership roles, the company announced the completion of a $68 million Series B financing round to support the development of its treatments of neuropsychiatric disorders.
The latest financing round will boost the study of KarXT, Karuna’s lead product candidate, which is currently in Phase II development as a potential treatment for acute psychosis in patients with schizophrenia. Karuna said the proceeds from the Series B will be used to advance the development of KarXT into several new indications, including geriatric psychosis and pain. Proceeds will also be used to develop new formulations of KarXT, expand the company’s pipeline and build out infrastructure.
KarXT is designed to preferentially target M1/M4 muscarinic receptors in the brain while inhibiting their stimulation in peripheral tissues to significantly improve tolerability. Two Phase I clinical trials demonstrated the tolerability and safety of the novel muscarinic acetylcholine receptor agonist. Top-line data from the Phase II trial is expected by the end of 2019. The primary endpoint is total change from baseline Positive and Negative Syndrome Scale (PANSS) score compared to placebo. Additional endpoints will assess cognitive and negative symptoms in addition to general symptomology. Karuna is also conducting a Phase 1b experimental pain trial in healthy volunteers and clinical work towards geriatric psychosis are expected to begin later this year.
Steve Paul, Karuna’s chief executive officer, said the financing from the Series B round will enable the company to deliver multiple milestones across its pipeline, as well as expand the capabilities and potential of the company’s muscarinic receptor platform.
“Patients living with schizophrenia often must choose among treatment options that only partly address their disabling psychotic and cognitive symptoms, often with undesirable side effects. Karuna’s mission is to deliver a more effective and better-tolerated treatment for this large and underserved patient population,” Paul said in a statement.
The Series B financing round was led by ARCH Venture Partners. It was supported by Fidelity Management & Research Company, Eventide Asset Management, Pivotal bioVenture Partners, Partner Fund Management, Wellcome Trust, Sands Capital, Alexandria Venture Investments, and founder PureTech Health. As part of the financing agreement, Heather Preston, managing director of Pivotal bioVenture Partners, has joined the board of directors of Karuna.
Robert Nelsen, co-founder and managing director of ARCH Venture Partners, said Karuna has made strong advances in its pipeline. He said ARCH has been encouraged by the data from its treatment for the acute psychosis in patients with schizophrenia.
“As an investor focused on companies with innovative approaches to meeting patient needs, we are pleased to support the next stage of Karuna’s development,” Nelsen said in a statement.
