Bristol-Myers Acquired Drug KarXT Poised For FDA Approval As First New Type Of Schizophrenia Treatment In 70 Years

The experimental drug KarXT, developed by Karuna Therapeutics, is expected to receive FDA approval later this month (Sept. 26), marking a significant breakthrough in schizophrenia treatment.

If approved, KarXT would become the first novel schizophrenia drug in over 70 years, offering new hope for patients and medical professionals alike.

Schizophrenia, a mental disorder that affects approximately 3.8 million adults in the U.S., is often characterized by severe symptoms such as social isolation, memory issues and psychotic episodes.

Last year, Bristol-Myers Squibb & Co BMY acquired Karuna Therapeutics for $330 per share in cash for a total equity value of $14 billion, or $12.7 billion net of estimated cash acquired. 

The Financial Times highlights that existing treatments, mainly focused on blocking dopamine receptors, often come with serious side effects, including weight gain and involuntary movements.

Despite the enthusiasm surrounding KarXT, the complexity and financial constraints of the U.S. health care system could limit access to this new treatment.

High drug pricing could also hinder access; the Institute for Clinical and Economic Review has suggested KarXT be priced at up to $20,000 per year.

In August, AbbVie Inc ABBV completed the acquisition of Cerevel Therapeutics, another company focused on developing drugs for neurological disorders, for a total equity value of approximately $8.7 billion, or $45 per share in cash.

The challenges extend beyond the cost and availability of medications, the Financial Times report adds. Many individuals with mental health conditions, particularly schizophrenia, encounter law enforcement rather than health care professionals during crises.

While KarXT’s approval could represent a crucial step forward, many experts, including Michael Thompson, a criminal justice expert, say that more systemic changes are needed to ensure mental health care is accessible and effective, especially for vulnerable populations like the homeless, according to FT.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Next:

• Zevra Therapeutics’ Drug Becomes First FDA-Approved Treatment For Ultra-Rare Neurodegenerative Disease

Photo via Pixabay.