On Wednesday, BofA Securities adjusted its price target for BioXcel Therapeutics (NASDAQ:BTAI), reducing it to $7.00 from the previous $8.00, while retaining a Buy rating on the company's stock. This revision follows BioXcel's latest quarterly update, which detailed the ongoing finalization of clinical programs aimed at broadening the application of its Igalmi drug.
BioXcel is currently gearing up to initiate clinical trials through the TRANQUILITY program, targeting the institutional Acute Agitation in Dementia (AAD) population. The company is seeking to gather clinical data with the Positive and Negative Syndrome Scale (PANSS) Excited Component (PEC) as the primary endpoint, which is essential for the proposed label expansion to cover a wider patient demographic.
Despite the shift in focus towards institutional AAD patients and the deprioritization of the commercial Igalmi program, BioXcel has reported fiscal year 2023 revenues of $1.4 million, aligning with consensus estimates. BofA Securities has adjusted its 2024 revenue projection for the company to $2 million, a decrease from the previously anticipated $3 million.
BofA Securities highlighted the importance of upcoming details regarding trial design and phase 3 timing, which are expected to become clearer after the release of minutes from a recent FDA meeting. With BioXcel's cash runway extending into mid-2024, the analyst noted investor attention on the company's financing strategies and anticipated further updates from management on securing future funds.
The firm remains optimistic about the potential for BioXcel's Igalmi label expansion, particularly for the '501 programs, which could address large populations with unmet medical needs. As a result, BofA Securities reaffirms its Buy rating on the stock, albeit with a reduced price objective.
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