BioXcel Therapeutics Slashes Workforce by Over 50 Percent
Pharmaceutical company BioXcel Therapeutics has announced a significant reduction in its workforce.
The company plans to cut its staff by more than 50 percent.
This would bring the number down from approximately 190 to 80 employees.
This move comes as BioXcel shifts its primary focus toward the development of its agitation treatment.
The company’s stock experienced a decline, with shares dropping about 36 percent to $4.75 during premarket trading.
BioXcel is channeling its efforts into the advancement of its drug, BXCL501.
This drug is currently under evaluation for its potential use in at-home settings.
It aims to treat agitation associated with conditions like schizophrenia, bipolar disorders, and mild-to-moderate dementia resulting from probable Alzheimer’s disease.
Earlier in June, BioXcel had raised concerns regarding issues tied to the recording of safety data at a site where the drug’s late-stage trial was being conducted, specifically for the treatment of agitation in Alzheimer’s patients.
During a conference call, the company said an external audit has been initiated over this, and it is anticipated an update will be given by the end of the year.
The drug is marketed under the brand name “Igalmi” in the U.S.
It has already received approval for its use in hospital settings.
It is prescribed to treat agitation in adult patients diagnosed with schizophrenia or bipolar disorder.
In line with its refocused strategy, BioXcel plans to cut down on in-hospital commercialization expenses.
Additionally, the company intends to halt trials that are no longer considered central to its business operations.
Reducing spending by 50 percent
With these job reductions, the company’s objective is to decrease its cash burn by over 50 percent.
It is aiming for about $80 million on an annualized basis going forward.
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As of June 30, the company reported cash and cash equivalents amounting to $127.5 million.
This is a decrease from $165.5 million as of March 31.
BioXcel also highlighted without any further funding from its existing agreements with Oaktree Fund Administration and the Qatar Investment Authority, it expects their current cash reserves to sustain it until mid-2024.
This is a revision from their earlier projection of 2025.