Mizuho slashes BioXcel Therapeutics stock price target to $2 from $16

Published 28/07/2025, 11:42
Mizuho slashes BioXcel Therapeutics stock price target to $2 from $16

Investing.com - Mizuho (NYSE:MFG) has dramatically cut its price target on BioXcel Therapeutics (NASDAQ:BTAI) to $2.00 from $16.00 while maintaining a Neutral rating on the stock. The company’s shares, currently trading at $1.81, have plummeted over 90% in the past year, according to InvestingPro data.

The significant reduction reflects Mizuho’s refreshed financial model incorporating updated quarterly financials, recent financings related to renegotiated debt obligations, revised forecasts for the company’s Igalmi product, and the company’s previously announced 1:16 reverse stock split. With a market capitalization of just $11 million and an overall "Weak" financial health score on InvestingPro, the company faces significant challenges.

Mizuho highlighted the importance of BioXcel’s upcoming Phase 3 SERENITY At-Home trial results for its lead asset Igalmi, expected in August 2025, noting that positive results will be "imperative" for securing the company’s next financial lifeline.

The research firm expressed confidence that the trial results will likely be positive but remains uncertain about what type of financing could follow, particularly considering BioXcel’s current market capitalization.

Mizuho has maintained its Neutral rating on BioXcel for approximately two years, with liquidity and funding concerns cited as the primary reasons for caution.

In other recent news, BioXcel Therapeutics has maintained its Buy rating from H.C. Wainwright, which reiterated an $8.00 price target for the company. The rating follows BioXcel’s announcement of a positive development in its SERENITY At-Home Phase 3 trial for BXCL501, where an independent Data Safety Monitoring Board recommended the trial’s continuation without modifications after reviewing safety data from 178 patients. Additionally, BioXcel has submitted a pre-supplemental New Drug Application meeting package to the FDA, seeking to expand the label for its drug IGALMI to include outpatient use for treating acute agitation in bipolar disorder or schizophrenia patients. The company has scheduled a meeting with the FDA for August 2025 to discuss the application further. In another development, the United States Patent and Trademark Office has allowed a new patent for IGALMI, covering a specific dosing regimen for treating acute agitation. Once issued, this will be the 14th patent for IGALMI listed in the FDA’s Orange Book.

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

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