BioXcel Therapeutics, Inc., a pharmaceutical company, has been notified by The Nasdaq Stock Market, LLC of non-compliance with the exchange's listing requirements. The company's common stock, traded under the symbol BTAI, has closed below the minimum bid price of $1.00 for 30 consecutive business days as of September 16, 2024, violating Nasdaq Listing Rule 5550(a)(2).
The notice, which does not immediately affect the trading of BioXcel's stock, grants the company a 180-day period until March 17, 2025, to meet the minimum bid price requirement.
To regain compliance, the stock's bid price must close at $1.00 or higher for at least 10 consecutive business days before the compliance deadline. BioXcel has stated its intention to monitor the situation and evaluate options to address the deficiency.
In a separate but related issue, BioXcel received another notice on September 20, 2024, indicating that the company's market value of listed securities had been below the required minimum of $35 million for 30 consecutive business days.
This notice also allows a 180-day compliance period, ending on March 19, 2025, during which the company must maintain a market value of at least $35 million for a minimum of 10 consecutive business days.
If BioXcel fails to regain compliance with either the bid price or market value requirements, it may be eligible for an additional compliance period or face delisting. The company may appeal any delisting decision by Nasdaq. However, there is no guarantee that BioXcel will be able to regain compliance or maintain its listing.
These developments are forward-looking statements and involve risks and uncertainties. BioXcel's ability to continue as a going concern, its limited operating history, reliance on third parties, and other factors could significantly impact its efforts to address these listing deficiencies.
In other recent news, BioXcel Therapeutics has been making significant strides in its clinical trials. The company has refocused its efforts on the late-stage development programs for BXCL501, a treatment for agitation associated with bipolar disorders, schizophrenia, and Alzheimer's disease. The SERENITY At-Home Phase 3 trial and the TRANQUILITY In-Care Phase 3 trial are currently underway to evaluate the safety and efficacy of BXCL501.
BioXcel Therapeutics has also announced a strategic workforce reduction of 28%, affecting 15 employees, to prioritize the development of BXCL501. The company reported Q2 revenue of $1.1 million, primarily from sales of IGALMI, surpassing projections.
Analysts from H.C. Wainwright and Canaccord Genuity have maintained their Buy ratings on the company, while Mizuho Securities holds a neutral stance due to concerns about the company's financial health.
InvestingPro Insights
BioXcel Therapeutics, Inc. (BTAI) is currently grappling with compliance issues related to its Nasdaq listing, as highlighted in the article. Delving into the financial metrics provided by InvestingPro, we can see that the company's Market Cap stands at $24.85 million, reflecting the challenges it faces in meeting the Nasdaq's market value requirement. Despite a significant revenue growth rate of 131.5% over the last twelve months as of Q2 2024, BioXcel operates with a notable debt burden and is quickly burning through cash, according to InvestingPro Tips. This is further substantiated by the company's negative Operating Income Margin of -4353.35% in the same period.
Investors should note that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable. Moreover, the stock has experienced a sharp decline over the past year, with a price total return of -78.27%. On a more positive note, BioXcel has sufficient liquid assets to meet its short-term obligations, which could provide some financial flexibility in the near term. To explore additional insights and tips, investors can access over 12 InvestingPro Tips for BTAI, which may offer further guidance on the stock's potential movements and financial health.
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