What happened?
Shares of clinical-stage biotech BioXcel Therapeutics (BTAI +3.36%) are down by 9.9% as of 11:58 a.m. EDT on Friday, after the company released its second-quarter earnings report before the market opened.
So what
BioXcel doesn't have any products on the market at the moment, and the company does not generate any revenue. However, the drugmaker reported a net loss of $21.4 million -- or $1.06 on a per-share basis. On average, analysts were expecting BioXcel's net loss per share to come in at $0.75. BioXcel's earnings miss may be the reason why investors sold off shares following today's release of its quarterly update.
The company's bottom-line decline was caused by a significant increase in its operating expenses -- to $21.4 million during the second quarter, up from $8.6 million recorded during the prior-year quarter. BioXcel ended the quarter with $65.5 million in cash and cash equivalents.
Image source: Getty Images.
Now what
BioXcel's updates regarding its pipeline candidates may be more important than its financial results. Most notably, the company is currently developing BXCL501, a sublingual thin film, as a treatment for acute agitation associated with psychiatric conditions such as schizophrenia and bipolar disorder. In July, BioXcel reported positive results from a phase 3 clinical trial for BXCL501, and the company plans on submitting a New Drug Application in early 2021. The biotech argues that there are over 13 million patients in the U.S. who experience acute agitation, and the current treatment options are ineffective.
This market could represent a billion-dollar opportunity for BioXcel, and given today's sell-off, now may be a good time for interested investors to buy shares of this biotech stock.
