Bristol Myers Squibb stock jumped after the pharma company won approval for its new schizophrenia drug late Thursday. “This drug takes the first new approach to schizophrenia treatment in decades,” the Food and Drug Administration said.

Available antipsychotic treatments work by blocking dopamine receptors. The new drug, Cobenfy, takes a different approach.

Bristol Myers Squibb's drug, KarXT, improved symptoms of adults with schizophrenia and had fewer side effects than antipsychotic treatments

The medication is the first in decades to have a different mode of action than do current drugs, achieving better symptom relief with fewer side effects.

With an FDA action date of Sept. 26, Bristol Myers Squibb’s KarXT could soon be the first new type of schizophrenia drug in three decades—and the company also sees potential in Alzheimer’s psychosis and bipolar disorder.

The Food and Drug Administration is slated to decide Thursday whether to approve the first new schizophrenia drug in at least three decades. Why it matters: The complex condition is currently treated with antipsychotics that carry safety risks like metabolic disorders,