March 20 Quick Takes: Latest data add to Karuna’s case in schizophrenia

As Karuna Therapeutics Inc. (NASDAQ:KRTX) prepares a mid-2023 submission of an NDA for KarXT to treat schizophrenia, new results of the Phase III EMERGENT-3 trial showed that the therapy met the primary endpoint measuring Positive and Negative Syndrome Scale (PANSS) total score compared with placebo (-20.6 points vs. -12.2 points, respectively; p<0.0001). The therapy pairs xanomeline, an agonist of muscarinic acetylcholine receptors M1 and M4, with trospium chloride, an antagonist of M2 and M3, and is designed to mitigate xanomeline’s side effects. KarXT had already met the primary endpoint in another Phase III trial, EMERGENT-2, as well as in a Phase II study. Karuna was off $9.13 to $182.50 on Monday.

Sangamo Therapeutics Inc. (NASDAQ:SGMO) is weighing its options for several gene regulation therapies after Novartis AG (SIX:NOVN; NYSE:NVS) and Biogen Inc. (NASDAQ:BIIB) each terminated deals with the company. Both agreements were struck in 2020, and together gave Sangamo $200 million in upfront payments. The Novartis deal covered zinc finger protein transcription factors targeting three undisclosed genes to treat neurodevelopmental disorders. The Biogen deal was for zinc finger proteins and/or AAV-based products directed at up to 12 targets, including genes for tauopathies, synucleinopathies including Parkinson’s disease, and myotonic dystrophy type 1. Neither deal resulted in a clinical candidate. Sangamo said both partners cited outcomes of strategic reviews as the reason for the terminations. Sangamo fell $0.08 to $1.93 on Monday...