Active Stocks: Karuna Therapeutics Inc [NASDAQ: KRTX] opened the trading week with huge gains. The stock shot up by 442.99% to close the day at $96. This followed news that the company had started an underwritten public offering of 2.6 million of its common stock. The company announced that, it will give underwriters a 30-day option to buy 390k shares of its common stock. However, the company noted that this offer will be subject to market changes and that there were no guarantees on whether the offer will be completed. Yesterday, the company filed a registration statement with the SEC regarding this offer.
But this was not the only big news for Karuna Therapeutics Inc in Monday’s trading session. The company also announced that phase 2 trials for its schizophrenia treatment met primary goals. The company stated that its treatment for acute psychosis in patients suffering from schizophrenia recorded a statistically significant drop as compared to a placebo. It also noted that there was a good tolerance to the treatment.
Following success in phase 2 trials, the company will now move to phase 3. According to the company’s Chief Medical Officer, Stephen Brannan, the company will now work on phase 3 by the end of 2020, as it moves closer to the commercialization of this treatment.
From the charts, KRTX was in a breakout yesterday. It rallied by over 400% on volumes of 15.01 million. However, it has eased up in pre-market trading, and at the time of writing, it was down by 12.76%. In the day, the key level to watch will be yesterday’s high of $100, which is now a key resistance level.
About Karuna Therapeutics Inc
Karuna Therapeutics Inc is a clinical-stage bio-pharma that develops treatments for neuropsychiatric conditions. It also develops treatments for other conditions of the nervous system. The company has its headquarters in Boston Massachusetts.