Market Overview

Karuna Completes $42 Million Series A Financing Round to Advance Selective Muscarinic Receptor Agonist Program into Phase 2 Study

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Participants include ARCH Venture Partners, Wellcome Trust, PureTech
Health, Steven Paul M.D., and other undisclosed investors

Karuna
Pharmaceuticals
, focused on targeting muscarinic receptors for the
treatment of disorders marked by psychosis and cognitive impairment,
today announced the completion of a $42 million Series A financing
round, including the issuance of $22 million in shares upon conversion
of debt into equity. Participants included ARCH Venture Partners, the
Wellcome Trust, Steven Paul M.D., PureTech Health, and other undisclosed
investors. Karuna plans to use the proceeds from the financing to
advance its lead product candidate, KarXT (Karuna-xanomeline-trospium
chloride), including the initiation of a Phase 2 trial in patients with
schizophrenia in the third quarter of 2018 and the expansion into other
therapeutic areas, including a non-opiate pain indication.

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"Karuna has all of the characteristics we look for in a game-changing
CNS company. Its lead drug candidate has a unique mechanism of action
for treating both psychosis and cognition, as well as an exciting
non-opiate application for pain. These are therapeutic indications where
there is a profound need for new treatments. We are excited about the
clinical data that have already been generated, and we look forward to
helping to drive the next chapter of growth," said Robert Nelsen,
Co-Founder and Managing Director of ARCH Venture Partners.

KarXT is designed to improve tolerability and unlock the potential of
muscarinic cholinergic receptor agonists that selectively target M1/M4
muscarinic cholinergic receptors in the brain while blocking their
activation in tissues outside the brain. Karuna is currently completing
a second Phase 1 trial using a proprietary co-formulation of xanomeline,
a muscarinic agonist Karuna exclusively licensed from Eli Lilly which
showed compelling efficacy in patients with schizophrenia and
Alzheimer's disease but had peripheral cholinergic side effects,
combined with trospium chloride, a muscarinic antagonist that acts only
in the periphery (outside of the brain and central nervous system). The
initial Phase 1 trial demonstrated a significant and clinically
meaningful reduction in pre-specified cholinergic side effects with
KarXT compared to xanomeline alone. The Phase 2 trial in patients with
schizophrenia is designed to replicate and expand on previous efficacy
and safety data with xanomeline in schizophrenia and Alzheimer's disease.

"We greatly appreciate the support of our investors and their confidence
in the potential of KarXT to be the first new and highly differentiated
medicine in over 50 years for the treatment of psychosis and cognitive
impairment in psychiatric and neurological disorders," said Andrew
Miller, Ph.D., Co-Founder and Chief Executive Officer of Karuna. "We
believe KarXT could be a promising new treatment that safely and
effectively addresses the debilitating positive, negative, and cognitive
symptoms of patients living with schizophrenia and other central nervous
system disorders."

About Karuna Pharmaceuticals
Karuna is a clinical-stage drug
development company targeting muscarinic cholinergic receptors for the
treatment of psychosis and cognitive impairment across central nervous
system (CNS) disorders, including schizophrenia and Alzheimer's disease,
as well as neuropathic pain. Karuna's lead product candidate, KarXT,
consists of xanomeline, a novel muscarinic acetylcholine receptor
agonist that has demonstrated efficacy in placebo-controlled human
trials in schizophrenia and Alzheimer's disease without the troubling
sedative, metabolic, and neurological side effects of currently
prescribed antipsychotic drugs, and trospium chloride, an FDA-approved
and well-established muscarinic receptor antagonist that has been shown
not to enter the central nervous system (CNS). Karuna has demonstrated
improved tolerability of KarXT vs. xanomeline in a placebo-controlled
human study and is currently conducting a Phase 1 trial using a
proprietary co-formulation of xanomeline and trospium chloride. A Phase
2 trial of safety and efficacy in people with schizophrenia is expected
to begin in the third quarter of 2018. Karuna, which was founded by PureTech
Health
 (LSE: PRTC), has a worldwide exclusive license for xanomeline
and has a patent portfolio more broadly covering selective muscarinic
targeting enabled by the KarXT approach. For more information, visit www.karunapharma.com.

Forward Looking Statement
This press release contains
statements that are or may be forward-looking statements, including
statements that relate to the company's future prospects, developments
and strategies. The forward-looking statements are based on current
expectations and are subject to known and unknown risks and
uncertainties that could cause actual results, performance and
achievements to differ materially from current expectations, including,
but not limited to, those risks and uncertainties described in the risk
factors included in the regulatory filings for PureTech Health plc.
These forward-looking statements are based on assumptions regarding the
present and future business strategies of the company and the
environment in which it will operate in the future. Each forward-looking
statement speaks only as at the date of this press release. Except as
required by law and regulatory requirements, neither the company nor any
other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events or
otherwise.

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