Mizuho Securities analyst Graig Suvannavejh maintained a Hold rating on Bioxcel Therapeutics (BTAI – Research Report) yesterday and set a price target of $4.00.
Geoff Meacham has given his Hold rating due to a combination of factors regarding Bioxcel Therapeutics’s financial position and the potential of its lead asset, Igalmi. The company’s recent third-quarter update provided some encouragement, especially with plans to advance Igalmi for treating agitation in Alzheimer’s disease. This is significant as there’s a large percentage of Alzheimer’s patients who suffer from agitation, presenting a substantial revenue opportunity for Bioxcel Therapeutics. While Meacham adjusted the timeline for the first AD-related revenue to come in earlier than previously expected, he remains cautious due to the company’s limited revenue and dwindling cash reserves, coupled with projected spending over the next 12-18 months.
The complexity of Bioxcel Therapeutics’s investment narrative, particularly with the upcoming Phase 3 study for Igalmi in Alzheimer’s agitation, impacts the Hold rating as well. The details of this study are still pending, raising questions about trial costs, design, FDA requirements for long-term safety in the older patient population, and specific timelines. Although the cost of the study is expected to be manageable and the timeline relatively short, these uncertainties contribute to the decision to maintain a Neutral position on the stock for now. Meacham’s analysis suggests a cautious approach to Bioxcel Therapeutics, recommending that investors stay on the sidelines until there’s more clarity on the company’s financial trajectory and the progress of Igalmi’s clinical development.
Suvannavejh covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Harmony Biosciences Holdings, and Bioxcel Therapeutics. According to TipRanks, Suvannavejh has an average return of -11.4% and a 36.15% success rate on recommended stocks.
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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.
Read More on BTAI:
- Largest borrow rate increases among liquid names
- BioXcel raises ‘substantial doubt’ about continuing as going concern
- BioXcel Therapeutics rating suspended at Goldman Sachs
- BioXcel Therapeutics price target lowered to $18 from $20 at Canaccord
- BioXcel aligns with FDA recommendation for Phase 3 trial for TRANQUILITY
