Analyst Alec Stranahan of Bank of America Securities maintained a Sell rating on Bioxcel Therapeutics, retaining the price target of $1.00.
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Alec Stranahan’s rating is based on several concerns surrounding Bioxcel Therapeutics’ recent data and strategic challenges. The efficacy data from the phase 3 SERENITY at-home study of BXCL501 showed some positive trends, such as a reduction in agitation severity, but left many questions unanswered. Notably, there are uncertainties regarding the FDA’s assessment of the study’s real-world applicability and the company’s ability to prevent overdosing.
Additionally, while the safety profile appeared consistent with previous findings, issues like the rate of somnolence remain unresolved. The market potential for BXCL501 is significant, yet substantial investment is required to educate physicians and patients, particularly in the at-home setting. These factors, combined with the company’s financial management challenges, contribute to the Sell rating.