What happened?

BioXcel Therapeutics (BTAI -2.75%) is starting the week on a strong note. As of 11:31 a.m. EDT on Monday, shares of the biotech company are up by 14.4%. There seem to be two major catalysts for these gains. First, BioXcel reported positive results from two clinical trials for one of its lead pipeline candidates. Second, a Wall Street analyst reiterated his buy rating and increased his price target on the company's stock.

So what

BioXcel's BXCL501 is a sublingual thin film that the company is developing for the treatment of acute agitation (psychological and behavioral symptoms) associated with psychiatric conditions such as schizophrenia and bipolar disorder. Today, the company reported that BXCL501 achieved its primary and secondary endpoints in two phase 3 clinical trials. In both of these studies, "BXCL501 was well tolerated, with rapid and durable reductions in agitation," in patients with schizophrenia and bipolar disorder.

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In addition to these excellent clinical trial results, H.C. Wainwright analyst Ram Selvaraju reiterated a buy rating on BioXcel, giving the stock a price target of $200. At writing, shares of BioXcel are trading for about $60.10 apiece, which means the stock still has a lot of room to grow, at least according to Selvaraju.

Now what

According to BioXcel, existing therapies for acute agitation associated with psychiatric disorders are inadequate. And given that there are roughly 9.7 million patients who experience agitations each year, this could represent an exciting opportunity for the biotech company. After this morning's gains, BioXcel's stock is up by 314.2% year to date. The company is gearing up to submit BXCL501 to regulatory authorities for review, and given the results from these clinical studies, the treatment will likely be approved. In other words, BioXcel's shares aren't done climbing.