Advancing neuropsychiatric drugs to the market is loaded with risk. Measured steps are necessary. BioXcel Therapeutics decided to take on the indication by developing a sublingual thin film of the approved drug dexmedetomidine to treat acute agitation in patients with schizophrenia and bipolar disorder.
The company expected its modified dexmedetomidine formulation, BCXL501 could help avoid the coercive techniques used in treating agitation episodes, such as physical restraints and seclusion, as well as limit hospitalization. BCXL501 could be absorbed much faster than injectable dexmedetomidine, delivering a calming effect to agitation and schizophrenia patients.
SanaCurrents assigned a pivotal sentiment on December 20, 2019, that BioXcel would deliver positive results in two catalysts, the separate phase III trials in agitation and schizophrenia patients. BioXcel tested BCXL501 in two trials because of the different indications and patient groups.
At the time of the December SanaCurrents report, BioXcel traded at $8.31 per share. When the statistically significant results in each trial were announced on July 20, 2020, BioXcel closed at $60.42 per share, reflecting a 627% gain.
BioXcel helped its case for BXCL501 in February, revealing it planned to test the drug as a treatment for opioid withdrawal symptoms. The addition of the opioid withdrawal indication prompted an analyst to issue a price target of approximately $130 per share for BioXcel. The market accepted the target, triggering a rise of BioXcel shares to the $40 per share range.
Like nearly all stocks, BioXcel suffered a swoon in late March 2020 because of the coronavirus pandemic. The stock quickly recovered, however, and climbed back to more than $50 per share when more funds flowed into biopharma and medical device stocks. BioXcel’s stock priced approached $70 per share in the morning of July 20 after the results were announced in the agitation and schizophrenia trials.