Karuna pullback brings buying opportunity, says William Blair

William Blair analyst Myles Minter views the recent pullback in the shares of Karuna Therapeutics as a buying opportunity. The stock down 13% off June 2023 highs and 25% off 52-week highs after the EMERGENT-2 readout, the analyst tells investors in a research note. The firm sees this as a buying opportunity ahead of a new drug application filing for a novel mechanism antipsychotic, KarXT, expected in Q3 as Karuna transitions into a commercial-stage entity. Blair keeps an Outperform rating on the shares.