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Karuna Therapeutics

Nasdaq:KRTX
Snowflake Description

Flawless balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KRTX
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs. The last earnings update was 4 days ago. More info.


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  • Karuna Therapeutics has significant price volatility in the past 3 months.
KRTX Share Price and Events
7 Day Returns
-3.8%
NasdaqGM:KRTX
5.2%
US Biotechs
10.5%
US Market
1 Year Returns
-
NasdaqGM:KRTX
0%
US Biotechs
-11.5%
US Market
KRTX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Karuna Therapeutics (KRTX) -3.8% -13.5% -6.2% - - -
US Biotechs 5.2% -6.5% -8.7% 0% 6.2% -10.4%
US Market 10.5% -15.4% -21.4% -11.5% 5.4% 18.1%
1 Year Return vs Industry and Market
  • No trading data on KRTX.
  • No trading data on KRTX.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Karuna Therapeutics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Karuna Therapeutics. This is due to cash flow or dividend data being unavailable. The share price is $70.81.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Karuna Therapeutics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Karuna Therapeutics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:KRTX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-3.68
NasdaqGM:KRTX Share Price ** NasdaqGM (2020-03-27) in USD $70.81
United States of America Biotechs Industry PE Ratio Median Figure of 37 Publicly-Listed Biotechs Companies 15.4x
United States of America Market PE Ratio Median Figure of 2,939 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Karuna Therapeutics.

NasdaqGM:KRTX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:KRTX Share Price ÷ EPS (both in USD)

= 70.81 ÷ -3.68

-19.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Karuna Therapeutics is loss making, we can't compare its value to the US Biotechs industry average.
  • Karuna Therapeutics is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Karuna Therapeutics's expected growth come at a high price?
Raw Data
NasdaqGM:KRTX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-16.2%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 34 Publicly-Listed Biotechs Companies 0.96x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Karuna Therapeutics, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Karuna Therapeutics's assets?
Raw Data
NasdaqGM:KRTX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $14.99
NasdaqGM:KRTX Share Price * NasdaqGM (2020-03-27) in USD $70.81
United States of America Biotechs Industry PB Ratio Median Figure of 429 Publicly-Listed Biotechs Companies 2.53x
United States of America Market PB Ratio Median Figure of 5,148 Publicly-Listed Companies 1.26x
NasdaqGM:KRTX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:KRTX Share Price ÷ Book Value per Share (both in USD)

= 70.81 ÷ 14.99

4.72x

* Primary Listing of Karuna Therapeutics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Karuna Therapeutics is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Karuna Therapeutics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Karuna Therapeutics has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Karuna Therapeutics expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-16.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Karuna Therapeutics expected to grow at an attractive rate?
  • Unable to compare Karuna Therapeutics's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Karuna Therapeutics's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Unable to compare Karuna Therapeutics's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:KRTX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:KRTX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -16.2%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.6%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:KRTX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:KRTX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 108 -97 -105 4
2023-12-31 15 -111 -125 4
2022-12-31 0 -125 -110 4
2021-12-31 0 -85 -88 6
2020-12-31 0 -54 -59 6
2020-03-28
NasdaqGM:KRTX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 -31 -44
2019-09-30 -31 -45
2019-06-30 -25 -42
2019-03-31 -21 -27
2018-12-31 -15 -18
2017-12-31 -4 -6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Karuna Therapeutics is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Unable to determine if Karuna Therapeutics is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:KRTX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Karuna Therapeutics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:KRTX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 -3.44 -0.18 -5.70 4.00
2023-12-31 -4.34 -3.35 -5.78 4.00
2022-12-31 -3.99 -3.00 -5.01 4.00
2021-12-31 -3.33 -2.63 -4.41 4.00
2020-12-31 -2.11 -1.58 -2.67 3.00
2020-03-28
NasdaqGM:KRTX Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -3.68
2019-09-30 -1.90
2019-06-30 -254.14
2019-03-31 -1,760.32
2018-12-31
2017-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Karuna Therapeutics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Karuna Therapeutics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Karuna Therapeutics has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Karuna Therapeutics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Karuna Therapeutics's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Karuna Therapeutics does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Karuna Therapeutics's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Karuna Therapeutics's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Karuna Therapeutics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Karuna Therapeutics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:KRTX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 -43.96 20.87 24.54
2019-09-30 -44.51 18.42 26.26
2019-06-30 -41.71 15.37 21.89
2019-03-31 -27.11 7.34 17.28
2018-12-31 -17.51 2.97 11.54
2017-12-31 -6.03 1.19 3.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Karuna Therapeutics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Karuna Therapeutics has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Karuna Therapeutics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Karuna Therapeutics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Karuna Therapeutics has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Karuna Therapeutics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Karuna Therapeutics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Karuna Therapeutics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Karuna Therapeutics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Karuna Therapeutics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Karuna Therapeutics has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Karuna Therapeutics Company Filings, last reported 2 months ago.

NasdaqGM:KRTX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 389.92 0.00 389.40
2019-09-30 162.53 0.00 161.61
2019-06-30 76.90 0.00 75.30
2019-03-31 83.04 0.00 84.28
2018-12-31 12.04 2.52 13.89
2017-12-31 -13.37 11.66 1.94
  • Karuna Therapeutics has no debt.
  • Karuna Therapeutics currently has no debt however we can't compare to 5 years ago as we have no data for that period.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Karuna Therapeutics has sufficient cash runway for more than 3 years based on current free cash flow.
  • Karuna Therapeutics has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 68.1% each year.
X
Financial health checks
We assess Karuna Therapeutics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Karuna Therapeutics has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Karuna Therapeutics's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Karuna Therapeutics dividends. Estimated to be 0% next year.
If you bought $2,000 of Karuna Therapeutics shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Karuna Therapeutics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Karuna Therapeutics's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:KRTX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1949 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:KRTX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Karuna Therapeutics has not reported any payouts.
  • Unable to verify if Karuna Therapeutics's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Karuna Therapeutics's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Karuna Therapeutics has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Karuna Therapeutics's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Karuna Therapeutics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Karuna Therapeutics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Karuna Therapeutics has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Karuna Therapeutics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Paul
COMPENSATION $973,799
AGE 68
TENURE AS CEO 1.6 years
CEO Bio

Dr. Steven M. Paul, also known as Steve, M.D. has been Chief Executive Officer of Karuna Pharmaceuticals Inc since August 15, 2018 and has been its Chairman since August 2018 and serves as its President. Dr. Paul has been a Director of Voyager Therapeutics, Inc. since September 2014. He was Chief Executive Officer of Voyager Therapeutics, Inc. from September 3, 2014 to July 16, 2018 and was its President from September 2014 to July 16, 2018. Dr. Paul serves as a Venture Partner at Third Rock Ventures, LLC since September 2010. He cofounded Tal Medical, Inc. in 2010 and serves as SAB Chair. He is the Founding Chief Executive Officer at Tal Medical. Dr. Paul is a world renowned psychiatrist, neuroscientist and drug developer. He has more than 20 years of management experience in the pharmaceutical and biotechnology industries and 37 years of scientific research experience. He has more than 35 years of neuroscience expertise. Dr. Paul joined Third Rock Ventures on October 5, 2010 and is a Senior Advisor to it and participates in the ideation and development of potential new companies. He was also the Professor of Neurology, Neuroscience, Psychiatry and Pharmacology or an adjunct professor of neuroscience at Weill Cornell Medical College of Cornell University since August 2010. He serves as a Scientific Advisor at Excalibur Fund Managers Limited. He served as Advisor of PureTech Ventures. He founded Sage Therapeutics, Inc. in 2011 and served as its Interim Chief Scientific Officer and Founding Advisor. Dr. Paul served as Interim President of R&D of Voyager Therapeutics, Inc. from June 2013 to September 3, 2014. Dr. Paul spent 17 years at Eli Lilly, during which time he held several key leadership roles and was responsible for its overall research and development efforts - helping to expand Lilly's R&D efforts in oncology and biotechnology - resulting in a pipeline of approximately 70 new molecular entities. During Steve's time at Lilly, Lilly launched some of the most successful psychiatric drugs of all time including the current market leading antidepressant, Cymbalta, which was developed under his direction. Dr. Paul was the Executive Vice President of Science and Technology at Eli Lilly and Company from July 2003 to February 28, 2010. He was the President of Lilly Research Laboratories of Eli Lilly and Company from May 16, 2003 to February 28, 2010 and Vice President since 1998. Dr. Paul joined Eli Lilly and Company in 1993 as the Vice President of Central Nervous System Discovery and Decision Phase Medical Research group in it and was the Group Vice President of Therapeutic Area Discovery Research and Clinical Investigation from 1996 to 2003. He was also the Vice President of Neuroscience Discovery Research at the company, helping to expand Lilly's R&D efforts in oncology and biotechnology - resulting in a pipeline of approximately 70 new molecular entities. He was the Scientific Director of the Intramural Research Program at National Institute of Mental Health from 1988 to 1993 and as the Chief of its Clinical Neuroscience branch. He was the President in Psychiatry and an Instructor in the department of Psychiatry at University of Chicago's Pritzker School of Medicine. Dr. Paul was a Medical Director in the Commissioned Corps of the United States Public Health Service. He is the Director of Karuna Pharmaceuticals, Inc. since March 2018. He serves as a Director of Sigma-Aldrich Company Limited. He serves as a Director of the Appel Alzheimer's Disease Research Institute. Dr. Paul serves as an Independent Director of Sigma-Aldrich Corporation since November 2006 and ImClone Systems LLC since November 21, 2008. Dr. Paul has been a Director for He has also served on the boards of directors of Alnylam Pharmaceuticals, Inc. since September 2010, Sage Therapeutics, Inc since September 2011 and Seaside Therapeutics LLC since July 2010. He serves as a Director at Tal Medical, Inc. He serves as Scientific Advisory Board Member at Tal Medical. He serves as a Director of the Lilly Foundation, the Foundation For The National Institutes Of Health Inc., Butler University and the Indianapolis Zoological Society. He served as a Member of Scientific Advisory Board of PsychoGenics Inc. He served as a Director of Constellation Pharmaceuticals, Inc., since February 1, 2011. He served as a Director of DemeRx, Inc. He served as a Member of Scientific Advisory Board at Cerecor, Inc. He serves as a Member of Science Board at the FDA. He serves as a Member of Advisory Board of BioXcel Therapeutics, Inc. Dr. Paul serves as Member of Science Advisory Board of The Mind Research Network. He serves as a member of the Scientific Advisory Board of the Allen Institute for Brain Sciences and the Institute on Aging at the University of Pennsylvania's School of Medicine. Dr. Paul was the Director of Helen & Robert Appel Institute for Alzheimer's Research at Weill Cornell Medical College, Inc. Dr. Paul served as a Director at BioCrossroads. He served as a Trustee of The Mind Research Network. He was appointed by the Secretary of the Department of Health and Human Services. He is a Grant Reviewer for several National Institute of Health committees. Dr. Paul serves on the IOM's Board on Health Sciences Policy. Dr. Paul is on the Editorial Boards of numerous scientific journals. Dr. Paul has also served as a member of the Advisory Council of the National Institute of General Medical Sciences. He is the Chairman of the Foundation for the NIH board of directors. Dr. Paul has authored or co-authored more than 500 papers and invited book chapters. He holds eight patents on inventions made at Lilly and NIH. He was listed as one of the most highly cited Neuroscientists in the world from 1980 to 2000 by Institute of Scientific Information. Dr. Paul was awarded a research fellowship in the Pharmacology Research Associate Training Program of the National Institute of General Medical Science to work with Dr. Julius Axelrod. He completed an Internship in Neurology at Charity Hospital in New Orleans. Dr. Paul is Board certified by the American Board of Psychiatry and Neurology. He is a Fellow of the American Association for the Advancement of Science. Dr. Paul is the recipient of many honors and awards including The Distinguished Service Medal of the USPHS and the Chief Scientific Officer of the Year Award. He is a member of the Institute of Medicine of the National Academy of Sciences. He received a Doctor of Medicine and an MSc in Anatomy and Neuroanatomy from Tulane University School of Medicine in 1975 and a B.A. in Biology and Psychology from Tulane University in 1972.

CEO Compensation
  • Insufficient data for Steve to compare compensation growth.
  • Steve's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Karuna Therapeutics management team in years:

1.6
Average Tenure
62
Average Age
  • The average tenure for the Karuna Therapeutics management team is less than 2 years, this suggests a new team.
Management Team

Steve Paul

TITLE
CEO, President & Chairman
COMPENSATION
$974K
AGE
68
TENURE
1.6 yrs

Andrew Miller

TITLE
Co-Founder & COO
COMPENSATION
$575K
AGE
38

Stephen Brannan

TITLE
Chief Medical Officer
COMPENSATION
$508K
AGE
62
TENURE
3 yrs

Troy Ignelzi

TITLE
Chief Financial Officer
AGE
51
TENURE
1 yrs

Alan Breier

TITLE
Chair of Scientific Advisory Board & Chief Clinical Advisor

Jim Audia

TITLE
Head of Medicinal Chemistry & Senior Adviser
AGE
62

Gregory Brophy

TITLE
Head of Regulatory & Senior Adviser
Board of Directors Tenure

Average tenure and age of the Karuna Therapeutics board of directors in years:

1.5
Average Tenure
64
Average Age
  • The average tenure for the Karuna Therapeutics board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alan Breier

TITLE
Chair of Scientific Advisory Board & Chief Clinical Advisor

Ed Harrigan

TITLE
Independent Director
COMPENSATION
$25K
AGE
66
TENURE
9 yrs

Steve Paul

TITLE
CEO, President & Chairman
COMPENSATION
$974K
AGE
68
TENURE
1.6 yrs

Heather Preston

TITLE
Independent Director
AGE
53
TENURE
1 yrs

Jim Healy

TITLE
Independent Director
AGE
54
TENURE
0.8 yrs

Atul Pande

TITLE
Independent Director & Member of Scientific Advisory Board
COMPENSATION
$25K
AGE
64

Bob Nelsen

TITLE
Independent Director
AGE
57
TENURE
1.6 yrs

Jeff Jonas

TITLE
Director
COMPENSATION
$233K
AGE
66
TENURE
1.4 yrs

Richard Keefe

TITLE
Member of Scientific Advisory Board

Allan Levey

TITLE
Member of Scientific Advisory Board
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Karuna Therapeutics individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Mar 20 Buy Heather Preston Individual 10. Mar 20 10. Mar 20 1,000 $80.00 $80,000
12. Mar 20 Buy Heather Preston Individual 12. Mar 20 12. Mar 20 2,050 $74.91 $146,998
24. Jan 20 Sell PureTech Health plc Company 22. Jan 20 22. Jan 20 -2,100,000 $95.67 $-200,907,000
10. Jan 20 Buy Heather Preston Individual 09. Jan 20 09. Jan 20 788 $70.50 $55,554
07. Jan 20 Buy Heather Preston Individual 03. Jan 20 03. Jan 20 1,427 $70.00 $99,601
03. Jan 20 Buy Heather Preston Individual 31. Dec 19 31. Dec 19 185 $70.00 $12,950
25. Nov 19 Buy Sofinnova Investment, Inc. Company 25. Nov 19 25. Nov 19 156,250 $96.00 $15,000,000
05. Jul 19 Buy Alexandria Venture Investments, LLC Company 02. Jul 19 02. Jul 19 30,000 $16.00 $480,000
02. Jul 19 Buy Arch Venture Partners, L.P. Company 02. Jul 19 02. Jul 19 200,000 $16.00 $3,200,000
02. Jul 19 Buy Sofinnova Investment, Inc. Company 02. Jul 19 02. Jul 19 700,000 $16.00 $11,200,000
02. Jul 19 Buy Bharat Chowrira Individual 01. Jul 19 02. Jul 19 10,000 $21.88 $212,140
02. Jul 19 Buy Steven Paul Individual 28. Jun 19 28. Jun 19 10,000 $23.43 $230,424
X
Management checks
We assess Karuna Therapeutics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Karuna Therapeutics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs. The company’s lead product candidate is KarXT, an oral modulator that is in Phase II clinical trial for the treatment of acute psychosis in patients with schizophrenia, as well as in Phase Ib clinical trial for the treatment of central nervous system disorders, such as cognitive and negative symptoms, Alzheimer’s, and pain. It also focuses on developing other muscarinic-targeted drug candidates. Karuna Pharmaceuticals, Inc. has a license agreement with Eli Lilly and Company; patent license agreement with PureTech Health LLC; and drug discovery collaboration with Charles River. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was founded in 2009 and is headquartered in Boston, Massachusetts.

Details
Name: Karuna Therapeutics, Inc.
KRTX
Exchange: NasdaqGM
Founded: 2009
$1,846,916,695
26,082,710
Website: http://www.karunatx.com
Address: Karuna Therapeutics, Inc.
33 Arch Street,
Suite 3110,
Boston,
Massachusetts, 02110,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM KRTX Common Shares Nasdaq Global Market US USD 28. Jun 2019
Number of employees
Current staff
Staff numbers
19
Karuna Therapeutics employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 03:37
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/03/24
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.