PureTech Health announces FDA approval of KarXT

PureTech Health (PRTC) announced that KarXT, which was initially invented and advanced by PureTech, has received U.S. FDA approval for the treatment of schizophrenia in adults. The FDA approval triggers two separate milestone payments to PureTech totaling $29M under agreements with Royalty Pharma (RPRX) and PureTech’s Founded Entity, Karuna Therapeutics, which was acquired by Bristol Myers Squibb (BMY) in March of 2024. Under these agreements, PureTech is also entitled to potential future payments related to additional milestones as well as approximately 2% royalties on net annual sales over $2B. Following the acquisition of Karuna, KarXT is now under the stewardship of BMS and will be marketed as Cobenfy.