2023-03-10 07:50:25 ET
After a ~13% decline in the previous session in reaction to the company's Q4 2022 results, BioXcel Therapeutics ( NASDAQ: BTAI ) continued to trade lower in the pre-market Friday as Jefferies downgraded it, citing an uncertain commercial outlook.
The analyst Chris Howerton sees lackluster uptake for the company's commercialized therapy Igalmi which the FDA approved in 2022 as a sublingual film formulation for acute treatment of agitation linked to schizophrenia or bipolar disorder in adults.
Citing higher barriers to its formulary adoption, the analyst paints a cloudy outlook for its launch trajectory in Emergency Departments.
The company is also advancing Igalmi as dexmedetomidine in Tranquility and Serenity trials for use at home and in supervised settings for agitation linked to dementia and other related neuropsychiatric conditions.
"We believe investors will further question expansion oppty's in Dementia and At-Home Agitation, tempering upside to Tranquility/Serenity readouts in 1H23," Howerton wrote, downgrading the stock to Hold from Buy.
However, the firm's price target on BTAI rises to $22 from $20 per share after certain model adjustments.
Read: Seeking Alpha contributor Francisco Javier Garcia reaffirmed his Strong Buy rating on BioXcel ( BTAI ) in January, noting that dexmedetomidine has over $1B revenue potential across all indications.
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BioXcel cut to Hold at Jefferies on uncertain commercial opportunity