Karuna Therapeutics Acquisition, Valuation, Funding & Investors

Karuna Therapeutics was acquired by Bristol-Myers Squibb for $14B in December 2023.

Karuna Therapeutics acquisition price

$14B

Acquired by Bristol-Myers Squibb · Dec 2023

Cumulative funding Karuna Therapeutics raised

$110M

across 2 funding rounds

Key investors in Karuna Therapeutics

  • ARCH Venture Partners
  • Wellcome Trust
  • PureTech Health
  • Fidelity
  • Alexandria Venture Investments
  • Sands Capital Ventures
  • Sofinnova Investments
  • Eventide

Karuna Therapeutics Overview

About Karuna Therapeutics

Karuna Therapeutics is a Boston-based biopharmaceutical company developing muscarinic receptor agonists for schizophrenia and Alzheimer's psychosis. Its lead candidate, KarXT, targets M1 and M4 receptors without dopamine blockade, advancing through Phase 3 trials. The pipeline addresses negative symptoms and cognitive deficits in neurological disorders.


Founded

2009

HQ

United StatesBoston, MA

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Valuation

$342M (Mar 2019)

Karuna Therapeutics Acquisition

Karuna Therapeutics was acquired by Bristol-Myers Squibb for $14B on 22 December 2023.

Before the acquisition Karuna Therapeutics had raised $110M across 2 funding rounds.

Karuna Therapeutics acquisition details
AcquirerDateTypePrice
22 Dec 2023Strategic M&A$14B

Karuna Therapeutics Valuation

Karuna Therapeutics is currently valued at $342M, based on its Series B in March 2019.

The $68M round was led by ARCH Venture Partners, with participation from Eventide, Wellcome Trust, Fidelity, Alexandria Venture Investments, Sands Capital Ventures and 4 other investors.

Karuna Therapeutics valuation by funding round

Karuna Therapeutics valuation by funding round
DateStageValuation
Mar 2019Series B$342M

Karuna Therapeutics Funding History

Karuna Therapeutics has raised a total of $110M across 2 funding rounds.

Karuna Therapeutics' first fundraising round was a $42M Series A in August 2018. The most recent completed round was a $68M Series B in March 2019.

Karuna Therapeutics funding rounds

Karuna Therapeutics funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Mar 2019Series BARCH Venture Partners (lead); Eventide; Wellcome Trust; Fidelity; Alexandria Venture Investments; Sands Capital Ventures; Partner Fund Management; Pivotal bioVenture Partners; Sofinnova Investments; PureTech Health$68M$342MKaruna Therapeutics is a clinical-stage biopharmaceutical company developing novel therapies for neuropsychiatric and neurological disorders, with its lead product candidate KarXT, a proprietary muscarinic acetylcholine receptor agonist combination for schizophrenia and other CNS conditions. Founded by PureTech Health, Karuna holds a worldwide exclusive license for xanomeline and a patent portfolio covering selective muscarinic targeting. In early 2019, it completed an $80 million Series B financing round, including a $12 million extension, with investors such as ARCH Venture Partners (lead), Fidelity Management & Research Company, Eventide Asset Management, Pivotal bioVenture Partners, Partner Fund Management, Wellcome Trust, Sands Capital, Alexandria Venture Investments, Sofinnova Investments, and PureTech Health. The funds supported ongoing Phase 2 trials for acute psychosis in schizophrenia, exploration of new indications like geriatric psychosis, Alzheimer's disease psychosis, and pain, plus novel KarXT formulations and early-stage discovery. Investors like ARCH Venture Partners participated via Arch Venture Partners IX, LLC, which later held significant shares as of July 2019. Post-Series B, Karuna advanced KarXT development, leading to an IPO in June 2019 raising $89.25 million and eventual acquisition by Bristol Myers Squibb in March 2024. The company focused on addressing unmet needs in neuropsychiatric disorders through muscarinic receptor modulation, differentiating from traditional antipsychotics by avoiding dopamine receptor blockade to reduce side effects like weight gain and movement disorders.
Aug 2018Series AARCH Venture Partners (lead); Wellcome Trust; Steven Paul; PureTech Health$42M-Karuna Therapeutics (also referred to as Karuna Pharmaceuticals), a Boston-based biotech company, develops novel therapies for neuropsychiatric disorders. Its lead candidate, KarXT (xanomeline-trospium chloride), is a muscarinic agonist-antagonist combination derived from Eli Lilly's investigational xanomeline, designed to treat schizophrenia by reducing cholinergic side effects through trospium, which acts peripherally. In August 2018, Karuna closed a $42 million Series A funding round led by ARCH Venture Partners, with participation from PureTech Health (its founder), Wellcome Trust, Steven Paul (former Third Rock Ventures partner), and others. The proceeds fund a Phase II clinical trial of KarXT in schizophrenia, set to start that quarter to replicate and expand on Eli Lilly's prior data, and expand research into areas like non-opiate pain treatments. Post-Series A, Karuna pursued further development, completing a Series B round totaling around $80-82 million by April 2019, with extensions from investors including Sofinnova Investments ($12 million), Fidelity Management & Research, Eventide Asset Management, Pivotal bioVenture Partners, Partner Fund Management, Sands Capital, and Alexandria Venture Investments. Stake ownership at that time included PureTech at 43.5%, ARCH at 18.6%, and Wellcome Trust at 7.5%. Karuna advanced KarXT into Phase II for schizophrenia psychosis and planned trials for psychosis in Alzheimer’s disease, cognitive/negative symptoms in schizophrenia, and pain. The company held a worldwide exclusive license for xanomeline and secured U.S. patents for KarXT. It later went public with a $75-89 million IPO in June 2019, raising additional capital for Phase III trials and pipeline expansion.

Who has invested in Karuna Therapeutics?

11 investors have backed Karuna Therapeutics across its funding rounds, including ARCH Venture Partners, Wellcome Trust, PureTech Health, Fidelity, Alexandria Venture Investments and Sands Capital Ventures.

Lead investors include ARCH Venture Partners.


Karuna Therapeutics Investors

Investors in Karuna Therapeutics by funding rounds participated
InvestorHQRoundsRoleFirst check
Wellcome TrustUnited KingdomLondon2ParticipantAug 2018
PureTech HealthUnited StatesBoston, MA2ParticipantAug 2018
ARCH Venture PartnersUnited StatesChicago, IL2LeadAug 2018
EventideUnited StatesBoston, MA1ParticipantMar 2019
FidelityUnited StatesBoston, MA1ParticipantMar 2019
Alexandria Venture InvestmentsUnited StatesLos Angeles, CA1ParticipantMar 2019
Sands Capital VenturesUnited StatesWashington, DC1ParticipantMar 2019
Partner Fund ManagementUnited StatesUnited States1ParticipantMar 2019
Steven PaulUnited StatesUnited States1ParticipantAug 2018

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Karuna Therapeutics Competitors

Karuna Therapeutics competitors include listed companies like Kelun-Biotech, Summit Therapeutics, Yunnan Baiyao Group and Exelixis, and private ones like Biosplice Therapeutics and Biocon Biologics.

Public and private companies comparable to Karuna Therapeutics
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Kelun-BiotechUnited StatesUnited StatesPublicly listed$307M($38M)$14B36.8x
Summit TherapeuticsUnited StatesUnited StatesPublicly listed-($1.1B)$14B5146.1x
Yunnan Baiyao GroupChinaChinaPublicly listed$6.1B$945M$14B1.9x
ExelixisUnited StatesUnited StatesPublicly listed$2.3B$901M$14B5.6x
Biosplice TherapeuticsUnited StatesSan Diego, CAPrivate--$12B-
Biocon BiologicsIndiaBangalorePrivate$1.1B-$4.5B4.2x

Karuna Therapeutics Public Comps

Karuna Therapeutics is no longer listed, but its public comps include Kelun-Biotech, Summit Therapeutics, Yunnan Baiyao Group, Exelixis, Orion, BridgeBio Pharma, Sichuan Biokin, Ipsen, Alteogen and CSPC Pharma Group.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Kelun-Biotech$307M($38M)43.5x36.8x(347.2x)(1347.5x)
Summit Therapeutics-($1.1B)-5146.1x(12.5x)(16.8x)
Yunnan Baiyao Group$6.1B$945M1.9x1.9x12.3x12.7x
Exelixis$2.3B$901M6.0x5.6x15.3x13.0x
Orion$2.2B$785M6.1x5.6x16.8x15.1x
BridgeBio Pharma$502M($569M)29.8x17.1x(26.3x)(36.3x)
Sichuan Biokin$376M($113M)40.2x42.4x(133.3x)(122.6x)
Ipsen$4.5B$1.1B3.1x2.8x12.6x6.8x

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Common questions about Karuna Therapeutics

When was Karuna Therapeutics founded?Karuna Therapeutics was founded in 2009.
Where is Karuna Therapeutics headquartered?Karuna Therapeutics is headquartered in Boston, MA, United States.
Is Karuna Therapeutics publicly listed?No, Karuna Therapeutics was acquired by Bristol-Myers Squibb in December 2023.
Who acquired Karuna Therapeutics?Karuna Therapeutics was acquired by Bristol-Myers Squibb in December 2023.
How much was Karuna Therapeutics acquired for?Karuna Therapeutics was acquired for $14B in December 2023.
What is Karuna Therapeutics' valuation?Karuna Therapeutics was last valued at $342M in its Series B in March 2019.
How much funding has Karuna Therapeutics raised?Karuna Therapeutics has raised $110M across 2 funding rounds.
What was Karuna Therapeutics' last funding round?Karuna Therapeutics' last funding round was a $68M Series B in March 2019, led by ARCH Venture Partners.
Who are Karuna Therapeutics' investors?Karuna Therapeutics' investors include Wellcome Trust, PureTech Health, ARCH Venture Partners, Eventide, Fidelity, Alexandria Venture Investments, Sands Capital Ventures, Partner Fund Management, Steven Paul, Pivotal bioVenture Partners and 1 other.
Which companies are comparable to Karuna Therapeutics?Companies comparable to Karuna Therapeutics include Kelun-Biotech, Summit Therapeutics, Yunnan Baiyao Group, Exelixis, Biosplice Therapeutics and Biocon Biologics.

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