(Alliance News) - PureTech Health PLC on Tuesday announced it received USD115.4 million after selling a portion of its stake in Karuna Therapeutics Inc.
The Boston, Massachusetts-based biotherapeutics company sold 2% of its 5.5% stake in its founded entity, Karuna Therapeutics. The sale comprised of 125,000 shares in on-market transactions and up to 477,100 call option shares.
Karuna Therapeutics shares jumped 72% to USD241.19 on Monday in New York. The stock was boosted by well-received trial results for a schizophrenia treatment candidate.
In addition to its remaining 3.5% stake, PureTech has the right to royalty payments of 3% of Karuna's net sales for any commercialised product. The company will also be eligible to receive milestone payments once regulatory approvals are achieved.
PureTech said it intends to use the proceeds to further company growth and will update its cash runway guidance in its half-yearly results, which will be announced later this month.
Shares in PureTech were up 0.2% at 226.88 pence in London on Tuesday morning.
By Dominique Pretorius; dominiquepretorius@alliancenews.com
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