Shares of BioXcel therapeutics (NASDAQ: BTAI) jumped 14.4% on Monday – and ended the trading session up 11.7% – thanks to a Wall Street analyst making the case for the biopharmaceutical company.
UBS analyst Colin Bristow launched coverage of BioXcel Therapeutics shares with a buy rating and price target of $99. The company’s shares are worth $51.72 each after today’s rally. Why does Bristow see such huge potential for BioXcel Therapeutics? The answer lies in the company’s lead pipeline candidate, sublingual thin film BXCL501. In a Phase 3 clinical trial, BXCL501 was shown to be effective in treating acute agitation in patients with schizophrenia and bipolar disorder.
Although BioXcel Therapeutics currently has no products on the market, Bristow believes its current share price is supported by the opportunity for BXCL501 to treat patients with these two psychological disorders. However, the analyst sees an even bigger upside for the stock in another market. BXCL501 is also being studied as a treatment for acute agitation in dementia patients, an opportunity that extends beyond the schizophrenia and combined bipolar disorder markets.
It’s always wise to take analyst recommendations with a grain of salt. But for what it’s worth, Bristow is onto something, at least in my opinion. The potential of the BXCL501 seems very enticing. Additionally, BioXcel Therapeutics currently has a market capitalization of just $1.26 billion, and that’s after the company’s stock has gained 211.5% in the past 12 months. In other words, it’s definitely worth keeping an eye on. health care stock.
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