BioXcel Therapeutics

BioXcel’s bankruptcy and potential sale come as the New Haven biotech seeks a path forward after years of losses. Subscribe to Hartford Business Journal and get immediate access to all of our subscriber-only content and much more. Click here to purchase a paywall bypass link for this article New Haven-based BioXcel Therapeutics, which has endured years of losses while trying to expand the market for its anti-agitation drug Igalmi, has filed for Chapter 11 bankruptcy protection and agreed to sell substantially all its assets to pharmaceutical company Teva in a deal potentially worth up to $145 million.

S. Bankruptcy Court in Delaware, according to a regulatory filing. The company plans to continue operating during the court-supervised sale process. 5 million in upfront cash and assume certain BioXcel liabilities. 5 million based on the outcome and timing of its pending application for expanded at-home use of Igalmi. The agreement also provides for up to $20 million in additional payments if the drug reaches certain sales thresholds after the sale closes. “Following a comprehensive review of strategic alternatives, we believe this option provides a clear framework to pursue a value-maximizing transaction,” said BioXcel CEO Vimal Mehta in a written statement.

Teva’s offer will serve as a “stalking horse” bid, which establishes a minimum price for BioXcel’s assets as the company seeks higher or otherwise better offers through a bankruptcy auction. The proposed sale and bidding process require court approval. S. Food and Drug Administration approval to allow the drug to be used at home. Igalmi, a thin film that dissolves in the mouth, is currently approved to treat acute agitation in adults with schizophrenia or bipolar disorder under the supervision of a healthcare provider. The drug will remain commercially available during the bankruptcy proceedings, BioXcel said.

The bankruptcy filing follows BioXcel’s May announcement that it was exploring strategic alternatives, including a potential sale, merger, licensing agreement or recapitalization, as it continued to post losses and burn through cash. 3 million. 8 million at the end of 2025. The company has also undergone multiple rounds of layoffs in recent years and completed a 1-for-16 reverse stock split in February 2025 to maintain its Nasdaq listing. , BioXcel Therapeutics uses artificial intelligence to identify existing drugs that could be repurposed to treat other conditions.

The FDA has set a Nov. 14 target date for deciding whether to approve Igalmi for at-home use. The outcome and timing of that decision would help determine how much BioXcel ultimately receives from Teva.