My mom always used to ask me where my money went, as I was notorious for running a low bank account balance. Now, I’m going to be telling the world exactly where my money goes.
Each and every week I have a recurring investing of $100 going into my Roth IRA, and I will be telling you here what pharmaceutical-related stocks and indexes I’m buying, as well as why. Note: this is not financial advice. Even if it was, I’m an amateur who shouldn’t be replicated. It’s just food for thought.
My inaugural pick, at least for an investment that I’m disclosing to the entire internet, is Karuna Therapeutics. Karuna is currently running a Phase III trial on KarXT, intended to treat schizophrenia. KarXT is a combination of two compounds: xanomeline (muscarinic receptor agonist with antipsychotic properties) and trospium (peripheral muscarinic antagonist, solely to block cholinergic effects of xanomeline.
What I like: The Phase II trial (EMERGENT-1) had promising results. 182 patients were enrolled and randomized to either KarXT or placebo. Primary endpoint was decrease in Positive and Negative Symptoms Score (PANSS, higher score = more severe schizophrenic symptoms, score range of 30-210), and the average starting PANSS in each group was roughly 97.0. Ultimately, the average decrease in PANSS with KarXT was -17.4 vs. -5.9 with placebo (p<0.001). This statistically significant result is also bolstered by a favorable side effect profile, with mild anticholinergic effects being most common. 246 participants are enrolled in the Phase III trial (EMERGENT-2), and the study is to be completed in June of 2022, and results posted sometime within the months to follow.
What I don’t like: Small study size in Phase II, relatively small study size for Phase III at only 246 participants. EMERGENT-1 had some mild racial disparities between groups, but these are the only cons I really saw.
All in all, if EMERGENT-2 shows promising data, I think we are likely to see a decent bump in Karuna stock, and the market demand for muscarinic agonists for control of schizophrenia will certainly make this a big push for FDA approval. I’m excited to see what the next set of data shows, but for now: Karuna, you’ve got my money.