PureTech Health PLC (PRTC) announced on Friday that its developed drug, KarXT, has received approval from the U.S. Food and Drug Administration (FDA) for the treatment of schizophrenia in adults.
This FDA approval triggers two milestone payments totaling $29 million, as stipulated by agreements with Royalty Pharma and Karuna Therapeutics, an entity founded by PureTech and acquired by Bristol Myers Squibb (BMS) in March 2024. Royalty Pharma had previously acquired an interest in PureTech's royalty rights related to KarXT.
Additionally, PureTech will be eligible for further future milestone payments and approximately 2 percent royalty on annual sales exceeding $2 billion.
KarXT will be marketed under the brand name Cobenfy by Bristol Myers Squibb.
