Bristol Myers to buy schizophrenia drugmaker Karuna TherapeuticsKaruna Therapeutics surges 47% after Bristol Myers Squibb announces $14 billion deal.
Bristol Myers Squibb (BMY.N) on Friday agreed to buy Karuna Therapeutics ( NASDAQ:KRTX ) for $14 billion, gaining a promising new type of antipsychotic medicine to help power growth as patents on its older therapies expire later this decade.
Karuna's experimental schizophrenia drug, called KarXT, should drive sales through the late 2020s and into the next decade, at a time when two of its top drugs, blood cancer treatment Revlimid and blood thinner Eliquis face generic competition.
The deal will help expand Bristol Myers’ drug pipeline after competition from a generic offering caused demand for the company’s blood cancer drug Revlimid to tumble in its third quarter.
The boards of directors at both Bristol Myers and Karuna unanimously approved the acquisition, and it is expected to close in the first half of 2024.
Technical Analysis
Karuna Therapeutics has broken up from an approximate horizontal trend channel in the medium long term. This signals a continued strong development, and the stock now meets support on possible reactions down towards the ceiling of the trend channel.
A decisive break will signal a further rise to $362 or more. There is no resistance in the price chart and further rise is indicated. In case of a negative reaction, NASDAQ:KRTX has support at approximately $238 dollar. Positive volume balance strengthens the stock in the short term.
Investors have steadily paid more to buy the stock, which indicates increasing optimism and that the price will continue to rise.
KRTX
KRTX - Has potential to reach new highs giving up to 6RA move above 238$ could take this to new highs
giving a R/R of more than 3.5R.
If price goes above 262$ (78.6% Fib retracement), it's likely it can go towards the 127.2% level around 300$.
KRTX 4days::SWING Best level to BUY // 200%+ trade (STOCKS)Why get subbed to to me on Tradingview?
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KRTX 4days::SWING Best level to BUY // 200%+ trade (STOCKS)
IMPORTANT NOTE: speculative setup. do your own
due dill. use STOP LOSS. don't overleverage.
🔸 Summary and potential trade setup
::: KRTX 4days/candle chart chart overview
::: strong bullish chart
::: previously pumped on strong catalyst
::: best reload BULLS near range lows
::: TP1 Bulls is 150% gains
::: TP2 Bulls is 200%+ gains
::: get ready to BUY low and you
::: will get rewarded later
::: best reload later October 2020
::: best reload zone 54/56 USD
::: measured move TP is 150% gains
::: TP BULLS is 20 USD and 25 USD
::: expecting strong gains next few months
::: next SWING is going to be 200%+ gains
::: well defined strong based more gains
::: STRATEGY: BUY/HOLD at/near 54/56 USD
::: BUY/HOLD swing trade setup / patient traders
::: 200%+ gains on BUY SIDE medium-term
::: good luck traders
🔸 Supply/Demand Zones
::: N/A
::: N/A
🔸 Other noteworthy technicals/fundies
::: TD9/Combo update: N/A
::: Sentiment mid-term: BULLS/reversal/mirror S/R level
::: Sentiment outlook short-term: RANGE/ACCUMULATION
$KRTX Will Retrace, Use Fibonacci To Cover$KRTX exploded up the charts on Monday rising 442%. This was clearly a short squeeze and we told our followers as such. After squeezing the shorts, $KRTX is out with an offering and raising money like all biotechs do on a big run. Now, it's the bagholders turn to get screwed over.
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; and patent license agreement with PureTech Health LLC. 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. Karuna Therapeutics, Inc. operates as a subsidiary of PureTech Health plc.
As always, use protective stops and trade with caution.
Good luck to all!
