BioXcel maintains Buy rating from Canaccord with consistent price target By Investing.com

Canaccord Genuity has maintained a Buy rating and a $7.00 price target for BioXcel Therapeutics (NASDAQ: BTAI), following the company’s second-quarter 2024 results and discussions at the Canaccord Genuity Growth Conference.

The focus was on BioXcel’s Igalmi, an approved treatment for agitation in patients with schizophrenia or bipolar disorder, which is currently used in institutional settings and generated $1.1 million in sales in the second quarter of 2024.

BioXcel is also working on expanding the use of its product BXCL501 for at-home treatment of agitation in patients with schizophrenia, bipolar disorder, and Alzheimer’s disease.

The company is preparing to initiate a Phase 3 trial for the at-home use of BXCL501, referred to as the SERENITY At-Home trial, and is finalizing its protocol for the TRANQUILITY In-care pivotal Phase 3 program in Alzheimer’s patients.

The approval for at-home use of BXCL501 is seen as a critical step, particularly as there are no products specifically approved for the acute treatment of agitation in Alzheimer’s patients, a market with a high unmet need and significant size. Canaccord Genuity anticipates the initiation of the SERENITY At-Home trial and is looking forward to the FDA’s feedback on the TRANQUILITY In-Care program.

Canaccord Genuity’s positive outlook is based on the relatively high chances of success for BXCL501 in clinical trials for the acute treatment of agitation and the significant market potential, especially for Alzheimer’s disease.

In other recent news, BioXcel Therapeutics has experienced a series of significant developments. Mizuho Securities revised its 12-month price target for the company from $4.00 to $1.00, maintaining a neutral rating.

The decision follows the company’s second-quarter update, which raised concerns about the firm’s financial stability and lack of a clear strategy for funding upcoming studies. Simultaneously, H.C. Wainwright also adjusted its outlook for BioXcel, reducing the price target to $7.00 but maintaining a buy rating, indicating a positive outlook despite financial constraints.

BioXcel Therapeutics reported a top-line revenue of $1.1 million for the second quarter, surpassing the expected $0.8 million, primarily due to sales of IGALMI, the company’s sole approved product. The company also reported positive results from an IGALMI study involving adult inpatients experiencing frequent agitation episodes related to bipolar disorder or schizophrenia. The drug was generally well-tolerated, with no signs of tolerance development or withdrawal symptoms post-treatment.

In an effort to manage its financial commitments, BioXcel revised its commercial supply agreement with ARx, modifying the minimum annual payment obligations for the next three years. The company also made amendments to its corporate structure, increasing the number of authorized shares from 100 million to 200 million.

InvestingPro Insights

As BioXcel Therapeutics (NASDAQ:BTAI) makes strides with its product Igalmi and prepares for critical Phase 3 trials, investors are keenly observing the company’s financial health and market potential. According to InvestingPro data, BioXcel currently has a market capitalization of approximately $25.88 million and has experienced a substantial revenue growth of 131.5% over the last twelve months as of Q2 2024. Despite this growth, the company operates with a significant debt burden and is quickly burning through cash, which is reflected in its negative operating income margin of -4353.35% for the same period.

InvestingPro Tips suggest analysts are optimistic about sales growth in the current year, which could be buoyed by the potential expansion of BXCL501’s use. Moreover, two analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company’s financial performance. However, it’s important to note that analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month, with a 1-month price total return of -41.72%.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on BioXcel Therapeutics, which can be found at https://www.investing.com/pro/BTAI. These insights could prove invaluable for assessing the company’s prospects and investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.