Bioxcel Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $8.00 price target.
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Ram Selvaraju has given his Buy rating due to a combination of factors surrounding Bioxcel Therapeutics. The completion of the pivotal Phase 3 SERENITY At-Home trial, which evaluated the safety of BXCL501 for treating agitation in bipolar disorder and schizophrenia patients in an at-home setting, is a significant milestone. The trial’s results, expected soon, are intended to support a supplemental New Drug Application to expand the use of IGALMI for outpatient settings. This development is seen as low-risk due to the safety-focused primary outcome and previous approval of IGALMI for institutional use.
Additionally, Selvaraju’s valuation of Bioxcel Therapeutics is based on a discounted cash flow analysis, estimating a total enterprise value of $260 million. This translates into a price target of $8 per share. However, he acknowledges potential risks, such as trial delays, negative study results, regulatory hurdles, and market competition, which could impact the company’s progress. Despite these risks, the positive outlook on the SERENITY trial and the strategic steps towards label expansion contribute to the Buy rating.
Selvaraju covers the Healthcare sector, focusing on stocks such as Cognition Therapeutics, Axsome Therapeutics, and Urogen Pharma. According to TipRanks, Selvaraju has an average return of 19.0% and a 51.01% success rate on recommended stocks.