Mizuho maintains Neutral rating on BioXcel shares By Investing.com

Mizuho Securities has reiterated a Neutral rating on BioXcel Therapeutics (NASDAQ: BTAI), maintaining the $1.00 price target for the company’s shares.

The position follows a recent meeting between Mizuho analysts and BioXcel’s CEO, Vimal Mehta, in New York City. The meeting coincided with BioXcel’s announcement that it had begun enrolling patients for its Phase 3 SERENITY At-Home study.

The study is designed to evaluate Igalmi, the company’s leading asset, for the acute treatment of agitation in individuals with schizophrenia or bipolar disorder in a home setting.

BioXcel Therapeutics previously faced hurdles with attempts to expand the label for Igalmi. Nevertheless, the initiation of the SERENITY At-Home study marks a forward step for the company.

Mizuho anticipates that the top-line results from this study will be available in the second half of 2025. The timing of these results is seen as a significant upcoming event for the company and its stakeholders.

Despite this progress, Mizuho expressed concerns regarding BioXcel’s financial health, particularly its diminishing cash reserves. The firm pointed out that the company’s ability to fully fund the SERENITY At-Home study through to completion, as well as to manage subsequent data analysis and reporting, poses a significant question. The financial stability and funding capabilities of BioXcel are crucial factors that could impact the company’s future operations and project outcomes.

In other recent news, BioXcel Therapeutics has made significant strides in its clinical development program with the initiation of a pivotal Phase 3 trial named SERENITY At-Home. The trial aims to evaluate the safety of BXCL501, an investigational film formulation of dexmedetomidine, for patients with bipolar disorders or schizophrenia in a home setting. The trial is expected to last between nine to twelve months, with top-line results anticipated in the second half of 2025.

BioXcel Therapeutics also reported a Q2 revenue of $1.1 million, primarily from sales of IGALMI, surpassing the projected $0.8 million. In the realm of analyst notes, H.C. Wainwright reaffirmed its Buy rating on BioXcel Therapeutics with a consistent price target of $7.00, while Mizuho Securities revised its 12-month price target from $4.00 to $1.00, maintaining a neutral rating.

InvestingPro Insights

As BioXcel Therapeutics (NASDAQ:BTAI) advances its Phase 3 SERENITY At-Home study, real-time data from InvestingPro provides a deeper financial perspective on the company. With a market capitalization of just over $22 million and a significant revenue growth of 131.5% in the last twelve months as of Q2 2024, BioXcel shows promising signs of expansion. However, the company’s financial health is under scrutiny, as reflected by an operating income margin of -4353.35% and an adjusted P/E ratio of -0.21, indicating substantial losses relative to its earnings.

InvestingPro Tips highlight that analysts are expecting sales growth in the current year, which may be a positive sign for the company’s future revenue. Yet, the same analysts are not anticipating profitability for BioXcel this year. Additionally, the stock has been under pressure, trading near its 52-week low and showing a sharp price decline of 85.39% over the last year. This aligns with Mizuho Securities’ concerns about the company’s financial health and the need for a robust financing strategy.

For investors considering BioXcel Therapeutics, the InvestingPro platform offers additional insights and tips—17 in total—that could guide investment decisions. These include evaluations of the company’s debt burden, cash burn rate, and stock performance metrics, which are crucial for understanding the risks and opportunities associated with BioXcel. For more detailed analysis and tips, interested parties can refer to the comprehensive list available on InvestingPro.

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