- Mizuho raised the price target on BioXcel Therapeutics Inc BTAI from $24 to $38, with a Buy rating.
- Since the analyst’s previous model update last December, BTAI shares have meaningfully outperformed vs. its peers (+61% vs +8% for the XBI), based on increased bullishness ahead of the first Phase 3 data for lead asset Igalmi/BXCL501 in Alzheimer’s disease (AD) agitation (expected in 1H23).
- The analyst revisited the BTAI model based on BXCL501 in schizophrenia, bipolar disorder, AD, and major depressive disorder (MDD), raising the peak sales estimate to $1.2 billion (vs. prior $936 million), with the most significant driver being a ~30% increase in AD agitation sales forecast to $814 million.
- The stock outperformance comes amid investor enthusiasm, with five more clinical data events expected this year.
- Most recently, BioXcel announced topline data from its Phase 2 trial of BXCL701 combined with Merck & Co Inc’s MRK Keytruda (pembrolizumab) in small cell neuroendocrine metastatic castration-resistant prostate cancer.
- BXCL701 combo demonstrated a favorable response rate in this difficult-to-treat cancer.
- Price Action: BTAI shares are up 8.34% at $33.25 on the last check Wednesday.
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