Shares of the biopharmaceutical company, BioXcel Therapeutics (NASDAQ: BTAI) tanked at the time of writing on Monday after the company announced a “strategic reprioritization.” As a part of this initiative, the company will lay off more than 50% of its workforce. The company added that in the absence of additional capital, its current cash and cash equivalents will last through the middle of next year.
Vimal Mehta, Ph.D., CEO of BioXcel Therapeutics commented, “Our AI-driven drug re-innovation approach has led to the capital-efficient development of product candidates in underserved therapeutic areas. We intend to prioritize our resources to develop BXCL501 for use in assisted living facility (ALF) and at-home settings and continue to advance our neuroscience pipeline.”
In the second quarter, the company generated revenues of $457,000, driven by its lead product, Igalmi, while its net loss widened by 43% year-over-year to $53.5 million.
Overall, analysts are cautiously optimistic about BTAI stock with a Moderate Buy consensus rating based on four Buys and two Holds.
