NEW YORK - Shares of BioXcel Therapeutics saw a significant downturn as the market opened today, following a 36% drop to $3.52 in premarket trading. The biopharmaceutical company, known for its focus on developing medicines for disorders affecting the central nervous system and immuno-oncology, reported disappointing third-quarter financial results that fell short of market expectations.
The company's latest earnings revealed a substantial loss of $50.5 million, coupled with revenue that did not meet projections. Analysts had estimated revenues to reach around $600,000; however, BioXcel's actual revenue was reported at $341,000, indicating a notable shortfall.
This performance marks a regression compared to the same quarter last year and did not align with the forecasts analyzed by FactSet. Investors reacted swiftly to the news, prompting a sharp decline in BioXcel's stock value on Monday, which carried over into today's trading session.
In response to the challenges faced in Q3, BioXcel announced strategic measures moving forward. One such initiative is the company's plan to conduct a home-based Phase 3 trial of Igalmi. This investigational treatment is aimed at addressing agitation in patients diagnosed with bipolar disorders or schizophrenia. The decision to proceed with a home-based trial follows the U.S. Food and Drug Administration's (FDA) recommendation, showcasing BioXcel's commitment to advancing its clinical programs even as it navigates financial setbacks.
Investors and industry watchers will be closely monitoring BioXcel's progress with Igalmi, as successful trials could potentially improve the company's financial outlook and therapeutic impact in the future.
InvestingPro Insights
InvestingPro real-time data reveals that BioXcel Therapeutics has a market cap of $110.63M and a negative P/E ratio of -0.52, indicating that the company is not profitable. The revenue for the last twelve months as of Q2 2023 was reported as $1.04M, with an impressive gross profit margin of 94.8%.
InvestingPro Tips shed light on the company's financial health and potential investment risks. BioXcel holds more cash than debt on its balance sheet, a positive sign of financial stability. However, the company is quickly burning through its cash, which could be a concern for investors. Moreover, the company has not been profitable over the last twelve months, which is reflected in the declining trend in earnings per share.
InvestingPro's comprehensive list of tips provides a deeper understanding of the company's financial landscape and offers valuable insights for potential investors. With over 19 additional tips available on InvestingPro, investors can gain a more thorough analysis of BioXcel Therapeutics and other companies of interest.
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