Why Karuna Therapeutics Shares Are Trading Sharply Lower

Karuna Therapeutics Inc KRTX shares are trading lower by 11.63% to $200.56 going into the close of Tuesday's session after the company announced a CEO transition.

What Happened?

Bill Meury will serve as president and chief executive officer and a member of the company's board, effective January 3, 2023.

Karuna says, most recently, Mr. Meury served as a partner at Hildred Capital Management, a private equity firm focusing on the healthcare industry. Previously, he was executive vice president and chief commercial officer at Allergan, where he had responsibility for over 50 products with $16 billion in revenue and over $3 billion in sales and marketing investment.

See Also: Why GameStop Stock Is Falling During Tuesday's Session

"Bill's appointment as president and CEO is the result of a thoughtful succession plan initiated by Steve's desire to follow his passion, the science, and focus on the continued growth of Karuna's research and development efforts. As we considered the natural evolution of the Company, Bill's leadership and expertise launching and commercializing medicines for psychiatric and neurological conditions was a seamless fit for Karuna, aligning with our strategy for late-stage clinical development and commercialization," stated Christopher Coughlin, the company's lead independent director.

According to data from Benzinga Pro, KRTX has a 52-week high of $278.25 and a 52-week low of $92.26.