Puretech Health receives $100m from sale of 55% stake in Karuna Therapeutics

10th Nov 2021 09:15

(Sharecast News) - Biotechnology company Puretech Health has received approximately $100.0m in cash from the sale of a portion of the group's shares in its founded entity Karuna Therapeutics.
Puretech said on Wednesday that it had sold 750,000 shares of its founded entity through a block trade executed by Morgan Stanley.

The FTSE 250-listed firm stated it intends to use the proceeds from the transaction to further the advancement and growth of the company and vowed to update its cash runway guidance in due course.

Following the transaction, Puretech continues to hold 1.65m in common Karuna stock, equal to approximately 5.6% of the company's outstanding shares as of September 30.

PureTech remains eligible to receive certain payments from Karuna under its license agreement, including sublicense payments and royalties on any sales of its KarXT product.

As of 0915 GMT, Puretech shares were up 0.28% at 353.82p.