What happened
Shares of BioXcel (BTAI -19.37%) were down 14.4% for the week as of Thursday's close, according to data provided by S&P Global Market Intelligence. The biotech company's shares closed at $2.91 last week, then fell to a new 52-week low of $2.48 on Thursday. The stock is down 88% year to date.
So what
BioXcel focuses on artificial intelligence-based clinical drug development platforms for neuroscience and immuno-oncology. The stock has been trending downward for a while, and on Sept. 25, the company released an SEC filing from Sept. 19 to show that BioXcel co-founder Krishnan Nandabalan, who had previously been its president and chief scientific officer, was resigning from the company's board. He remains at BioXcel's sister company, InveniAI, as chairman, president, and CEO.
The leadership change was enough to shake up the stock, but BioXcel apparently is about to have layoffs as well. In August, the company said it would be trimming its workforce from 190 to 80 employees. According to Layoff Radar, the 110 employees will be terminated by Oct. 15.
Now what
For the second quarter, the company reported revenue of $457,000, all from sales of Igalmi, a drug that is delivered via a film that is placed under the tongue or behind the lower lip, and is used for the acute treatment of agitation associated with schizophrenia and bipolar disorder I or II in adults. The drug was just approved last year.
BioXcel also said it had a net loss of $53.5 million in Q2, compared to a net loss of $37.7 million in the same period a year ago. It also said it had only $127.5 million in cash on the books, enough it said, after a reorganization, to fund operations midway into 2024. The company is also hoping that it can gain approval for BXCL501 as a treatment for acute agitation in mild to moderate dementia patients with probable Alzheimer's disease. The drug fared well in a phase 3 trial in that indication, the company said in June.
