Hold Rating on Bioxcel Therapeutics Amid Growth Potential and Financial Uncertainties

Analyst Graig Suvannavejh from Mizuho Securities maintained a Hold rating on Bioxcel Therapeutics (BTAI – Research Report) and keeping the price target at $4.00.

Graig Suvannavejh has given his Hold rating due to a combination of factors that imply a cautious approach to Bioxcel Therapeutics’ stock. He acknowledges the company’s potential growth through its TRANQUILITY and SERENITY programs, which aim to expand the use of its leading drug, BXCL501/Igalmi. However, he notes that there are still unanswered questions regarding the initiation of critical Phase 3 studies and the company’s plan to address its limited cash runway, which only extends into the second half of 2024. These concerns, along with modest current revenues and outstanding credit agreement covenants, contribute to the Neutral rating.
Despite being incrementally positive about the company after the first quarter call of 2024 and a follow-up with management, Suvannavejh maintains a more conservative stance until there is clearer visibility on the company’s next steps. He believes in the clinical profile and utility of Igalmi, especially for treating agitation in Alzheimer’s patients, which represents a significant revenue opportunity. Nevertheless, the company’s financial constraints and the need for improved management execution are pivotal factors in maintaining the Hold rating at this juncture.

BTAI’s price has also changed dramatically for the past six months – from $5.510 to $2.185, which is a -60.34% drop .

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Bioxcel Therapeutics (BTAI) Company Description:

BioXcel Therapeutics, Inc. is a clinical stage biopharmaceutical company focuses on drug development. The firm’s two clinical development programs are BXCL501, a sublingual thin film formulation designed for acute treatment of agitation resulting from neurological and psychiatric disorders, and BXCL701, an immuno-oncology agent designed for treatment of a rare form of prostate cancer and for treatment of pancreatic cancer. The company was founded by Vimal D. Mehta on March 29, 2017 and is headquartered in New Haven, CT.