Hold Rating on Bioxcel Therapeutics Amid Strategic and Clinical Trial 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 surrounding Bioxcel Therapeutics’ strategic decisions and clinical trial plans. The analyst acknowledges the company’s announcement of further details for its Phase 3 SERENITY At-Home Study, which aims to extend the use of their lead asset Igalmi/BXCL501 beyond the hospital setting. However, Suvannavejh expresses concerns over the lack of clarity regarding the trial’s start timing, costs, and the company’s capital allocation between the SERENITY At-Home and the TRANQUILITY IN-Care study, the latter of which targets Alzheimer’s disease agitation and presents a potentially larger revenue opportunity. Additionally, there is uncertainty about the company’s financing situation, which adds to the cautious stance.

Furthermore, Suvannavejh notes that expanding the label of BXCL501 to new areas is crucial for the future success of the product and Bioxcel Therapeutics as a whole, especially after the strategic pullback in hospital selling efforts. While the design and plans for pivotal Phase 3 trials to enable the drug’s use for at-home treatment of acute agitation are seen as positive steps, the report suggests that these factors are not sufficient to warrant a more optimistic rating at this time. This cautious approach stems from the broader context of the company’s recent sales figures and strategic focus, leading to the Hold rating as a prudent recommendation.

Suvannavejh covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Intra-Cellular Therapies, and Terns Pharmaceuticals. According to TipRanks, Suvannavejh has an average return of -11.6% and a 36.70% 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.