BioXcel Therapeutics, Inc.

BioXcel Therapeutics, Inc. (NASDAQ: BTAI) is a clinical-stage biopharmaceutical business developing innovative therapeutics in neuroscience and immuno-oncology using artificial intelligence (AI) methods. Its two major pipeline products are 1) BXCL501, used to treat agitation caused by neuropsychiatric disorders, and 2) BXCL701, used to treat prostate cancer.

Key Highlights

• The company has not generated any revenues to date as its products are in the clinical stages. In addition, BTAI reported a decline in Research & Development (R&D) expenses to USD 28.25 million in H1FY21 (ended June 30, 2021) from USD 30.28 million reported in H1FY20.
• Due to increasing operational expenditures such as salaries, professional and consulting fees, and marketing costs, BTAI witnessed an increase in operating losses to USD 53.99 million during H1FY21 vs. USD 36.43 million during H1FY20.
• According to BTAI's Q2FY21 press release, the Phase 3 clinical study of BXCL501 for the acute treatment of agitation associated with dementia is planned to start in Q4FY21.
• The Prescription Drug User Fee Act (PDUFA) date for BXCL501's New Drug Application (NDA) for treating agitation relating to schizophrenia and bipolar disorders has been set for January 05, 2022.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the lower band of the 52-week range of USD 23.07 to USD 67.74.
• BTAI stock price has declined 46.03% and 34.15% in the past nine and twelve months, respectively.

Technical Price Chart (as of September 22, 2021). Analysis by Kalkine

Conclusion: Considering the uncertain outlook, long road to regulatory approvals, doubtful topline results in the near future, and technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 29.15, down 0.95% as of September 22, 2021.

*The reference data in this report has been partly sourced from REFINITIV.