- We are initiating coverage on BTAI with a target price of USD 126 (+600% potential upside) and a potential 60% downside (~$7 cash value). We like the risk-reward set-up for the company.
- Our investment thesis/key catalyst revolves around the April 5th PDUFA date for BXCL501; we believe FDA will approve the drug for treating acute agitation related to schizophrenia and bipolar indication.
- We like BXCL501 because the treatment effects in schizophrenia patients with acute agitations are 1) fast, 2) high degree of efficacy, 3) durability, 4) convenience(SL), 5) safety.
- We see a clearly defined and large market (peak sales USD 800-1Bn (Risk-adjusted)); available SOCs have problematic side-effects and addictive properties that BXCL501 can fill.
For further details see:
BioXcel Therapeutics Inc.: Speculative Buy To Play The PDUFA For BXCL501 In April