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February 13, 2024

BioXcel Therapeutics calls off proposed $60M public offering

PHOTO | FILE IMAGE Vimal Mehta is CEO of BioXcel Therapeutics Inc.
By Greg Bordonaro

Less than a week after announcing plans to raise $60 million from inventors, New Haven-based BioXcel Therapeutics Inc. said Tuesday it’s calling off the proposed public offering.

The company, which uses artificial intelligence to develop medicines in neuroscience and immuno-oncology, said the sudden about-face came after the company’s management determined “that current market conditions are not conducive for an offering on terms that would be in the best interests of the Company's stockholders.”

BioXcel said it planned to sell $60 million of shares of its common stock to “fund ongoing and planned clinical trials, commercialization and general corporate purposes.” 

In August, the company announced plans to reduce its workforce from 190 employees to 80 as a cost-savings measure. The layoff followed the announcement that BioXcel had a net loss of $53.5 million in the second quarter of 2023, and that it had cash and equivalents totaling $127.5 million.

In a report filed with the Securities and Exchange Commission on Feb. 8, BioXcel updated that figure, estimating that it had approximately $61.6 million of cash and cash equivalents.

BioXcel on Tuesday said it intends to focus on an upcoming meeting (Feb. 20) with the Food and Drug Administration related to its phase 3 TRANQUILITY At Home trial. 

The trial will evaluate the company’s commercial product, IGALMI (dexmedetomidine), a sublingual film, as a potential acute treatment of agitation associated with dementia due to probable Alzheimer’s disease in the at-home setting. 

HBJ Staff Writer David Krechevsky contributed to this report. 

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