BioXcel Therapeutics regains Nasdaq compliance

Published 28/02/2025, 13:06
BioXcel Therapeutics regains Nasdaq compliance

NEW HAVEN - BioXcel Therapeutics, Inc. (NASDAQ:BTAI), a company specializing in the development of medicines using artificial intelligence, has regained compliance with Nasdaq’s minimum bid price rule. Currently trading at $1.73, the stock has experienced significant volatility, having fallen 96% over the past year. The biopharmaceutical firm confirmed on Friday that it had received a notification from The Nasdaq Stock Market LLC, indicating that its common stock had sustained the necessary minimum closing bid price of $1.00 per share over a period of at least 12 consecutive trading days.

The compliance milestone comes after BioXcel Therapeutics was previously notified on September 16, 2024, of its non-compliance with Nasdaq Listing Rule 5550(a)(2) due to its stock price falling below the $1.00 threshold for 30 consecutive business days. Meeting the compliance standards by February 26, 2025, the company has now corrected this deficiency. According to InvestingPro data, the company operates with significant debt and is rapidly burning through cash, with a current ratio of 1.87.

BioXcel Therapeutics uses big data and machine learning algorithms to repurpose approved drugs and clinically validated candidates for new therapeutic uses, primarily in the field of neuroscience. Its subsidiary, OnkosXcel Therapeutics, focuses on creating treatments in the area of immuno-oncology.

The announcement is based on a press release statement from BioXcel Therapeutics. The company’s approach to drug development represents a growing trend in the pharmaceutical industry to integrate advanced technologies such as AI to innovate and expedite drug discovery and development processes.

In other recent news, BioXcel Therapeutics has implemented a 1-for-16 reverse stock split, which took effect at 5:00 p.m. Eastern Time, with trading on a split-adjusted basis beginning on February 10, 2025. This move aims to increase the per-share trading price of the company’s common stock and ensure compliance with Nasdaq’s minimum bid price requirement. Additionally, BioXcel Therapeutics has reported significant progress in its clinical programs, particularly with the SERENITY At-Home Phase 3 trial for BXCL501, targeting acute agitation in patients with bipolar disorders or schizophrenia. The company has also amended an existing credit agreement and raised $7 million in equity funding to enhance operational and financial flexibility.

H.C. Wainwright analysts have adjusted their price target for BioXcel Therapeutics to $3 from $5, maintaining a Buy rating despite financial challenges and a slowdown in commercial activities for IGALMI. The company’s third-quarter sales were approximately $214,000, falling short of the $1.2 million forecasted by analysts. In response to financial headwinds, BioXcel conducted a capital raise at the end of last year, issuing shares and warrants, which resulted in equity dilution. Furthermore, BioXcel Therapeutics has expanded its Board of Directors by appointing Dr. Rajiv Patni, bringing his extensive experience in global product development to the board.

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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