The new study involving Alzheimer's patients was stopped early due to positive results. The findings were presented Wednesday at a conference in San Diego.
If U.S. regulators approve it, the drug would the first treatment specifically for dementia-related psychosis and the first new Alzheimer's medicine for in nearly two decades, the AP reported.
Research suggests that up to 30% of the 8 million Americans with dementia develop psychosis.
"This would be a very important advance," Dr. Howard Fillit, chief science officer of the Alzheimer's Drug Discovery Foundation, told the AP.