Karuna Therapeutics (NASDAQ: KRTX), a clinical-stage biotech, is having a record-breaking day. As of 2:25 p.m. ET, the company's shares were up by an eye-popping 70%, surging to an all-time high during Monday's trading session.

Although the biotech released its 2022 second-quarter results this morning, the real needle-mover is the news that Karuna's experimental psych medication, KarXT (xanomeline-trospium), hit the mark in a late-stage trial for adults with schizophrenia.

With strong phase 3 results in hand, Karuna plans to file for the drug's approval in schizophrenia by mid-2023. The company said it plans on waiting for long-term safety data before formally filing for approval. KarXT is thus on track to possibly hit the market by early 2024.

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Source Fool.com