Mizuho cuts BioXcel to neutral, cites reduced expectations for lead drug (BTAI)

Mizuho downgraded BioXcel Therapeutics (NASDAQ:BTAI) to impartial and slashed its worth goal within the wake of the corporate’s Q2 earnings report and restructuring information.

The funding financial institution mentioned that it was now taking a “extra conservative” view of the corporate’s lead asset, Igalmi/BXCL501, and decreased its peak risk-adjusted gross sales estimates to round $500M from $1.1B. It additionally pushed out the “timing and magnitude of potential income” for Igalmi within the remedy of Alzheimer’s illness agitation.

Mizuho mentioned it finds the shares “appropriately valued” given its revised mannequin, restricted catalyst calendar and money runway, which runs into mid-2024. It added that it would revisit its present base view case and assumptions if the corporate studies optimistic updates from its deliberate conferences with the FDA.

Mizuho additionally decreased its worth goal for the inventory to $4 from $40.