Clinical-stage drug development company Karuna Pharmaceuticals, an affiliate of PureTech Health plc (LSE: PRTC), has raised USD42m in a Series A financing round, PureTech Health announced on Thursday.
The financing included the issuance of USD22m in shares upon conversion of debt into equity.
Inverstors included ARCH Venture Partners, the Wellcome Trust, Steven Paul MD, PureTech Health, and others.
Karuna intends to use the proceeds from the financing to advance its lead product candidate, KarXT (Karuna-xanomeline-trospium chloride), including the initiation of a Phase 2 trial in patients with schizophrenia in the third quarter of 2018 as well as expansion into other therapeutic areas, including a non-opiate pain indication.
The company, which was founded by PureTech Health, focuses on muscarinic cholinergic receptors for the treatment of psychosis and cognitive impairment across central nervous system disorders, including schizophrenia and Alzheimer's disease, as well as neuropathic pain.
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