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.
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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.