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FDA approves schizophrenia drug that could alter how disorder is treated

Key Takeaway: The FDA has approved Cobenfy, a new drug developed by Karuna Therapeutics and sold by Bristol Myers Squibb, which may transform the treatment of schizophrenia by targeting muscarinic receptors in the brain.
Price reaction · baseline $49.95 (2024-09-25 close) · hit after-hours · 1 other BMY headline(s) in the window, move may be shared
day 0 close · peak
+0.3%

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POSITIVE FACTORS

  • FDA approval of Cobenfy represents a significant advancement in schizophrenia treatment.
  • Cobenfy is a new type of medicine that may change treatment approaches.

BiopharmaWatch Analysis

From our catalyst data and publicly available data · not financial advice
Best trade, last catalyst
+26%
120-day peak, hindsight
Typical move
1.7%
average across 15 past catalysts
Lead asset
Muraglitazar
Phase 2 · Diabetes Mellitus II

Full Press Release Details

Cobenfy was developed by Karuna Therapeutics, which was acquired by Bristol Myers Squibb

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By Adam Feuerstein
Sept. 26, 2024
Senior Writer, Biotech
Adam Feuerstein
Adam Feuerstein is a senior writer and biotech columnist, reporting on the crossroads of drug development, business, Wall Street, and biotechnology. He is also a co-host of the weekly biotech podcast The Readout Loud and author of the newsletter Adam’s Biotech Scorecard. You can reach Adam on Signal at stataf.54.
For decades, doctors caring for people with schizophrenia have relied on mood-regulating drugs that target the brain chemical dopamine. On Thursday, the Food and Drug Administration approved for the first time a new type of medicine that may change the way the psychiatric disorder is treated.
The drug, called Cobenfy, will be sold by Bristol Myers Squibb. It was developed by the biotech company Karuna Therapeutics, which Bristol acquired for $14 billion last year .
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Cobenfy was approved to reduce the psychotic symptoms associated with schizophrenia. It is a new type of medicine that works by stimulating a pair of muscarinic receptors in the brain, that, in turn, control the release of a brain chemical called acetylcholine.
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• Adam Feuerstein Senior Writer, Biotech Adam Feuerstein is a senior writer and biotech columnist, reporting on the crossroads of drug development, business, Wall Street, and biotechnology. He is also a co-host of the weekly biotech podcast The Readout Loud and author of the newsletter Adam’s Biotech Scorecard. You can reach Adam on Signal at stataf.54.
Adam Feuerstein
Senior Writer, Biotech
Adam Feuerstein is a senior writer and biotech columnist, reporting on the crossroads of drug development, business, Wall Street, and biotechnology. He is also a co-host of the weekly biotech podcast The Readout Loud and author of the newsletter Adam’s Biotech Scorecard. You can reach Adam on Signal at stataf.54.

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Last updated: Sep 26, 2024