BioXcel Therapeutics Announcement

BioXcel Therapeutics, a biopharmaceutical company based in New Haven, Conn., has announced its plans to make significant workforce cuts in an effort to reduce costs and extend its cash runway. The company aims to reduce its workforce from 190 employees to 80, a nearly 60% reduction. Additionally, BioXcel plans to cut its cash burn in half, targeting an annual rate of $80 million.

To ensure the longevity of its cash reserves, BioXcel is actively seeking additional financing and is currently engaged in discussions with potential lenders. The company anticipates that its current cash reserves will be sufficient until mid-2024 following its strategic reprioritization.

In addition to the workforce reduction, BioXcel will also be suspending programs that are no longer considered core to its business. The focus will now shift towards market access through collaboration with large hospital systems as part of a revised commercial strategy.

For the second quarter, BioXcel reported a net loss of $53.5 million, or $1.83 per share, compared to a loss of $37.7 million, or $1.35 per share, during the same period last year. Analysts polled by FactSet had expected a loss of $1.65 per share.

These measures are part of BioXcel’s ongoing efforts to optimize operations and streamline costs while maintaining its commitment to advancing biopharmaceutical innovation.