Shares of BioXcel Therapeutics (BTAI) were sinking 15.2% as of 11:25 a.m. EDT on Thursday. The decline came after the company's regulatory filing to the Securities and Exchange Commission revealed that chief commercial officer William P. Kane Jr. had resigned on Oct. 8.
It's not unusual for the unexpected departure of a top executive to cause a biotech stock to fall. That's especially the case when the biotech hopes to soon have its first product on the market, as BioXcel does.
Kane was named chief commercial officer for the company in June 2020. He previously served as the head of Allergan's U.S. general medicine business unit.
No details were released about why Kane left BioXcel. The uncertainty about whether or not there's a concerning underlying issue behind his departure has rattled investors. However, it's possible that today's pullback is much ado about nothing.
The most important thing to watch with BioXcel is the anticipated Food and Drug Administration approval decision for BXCL501 in treating agitation associated with schizophrenia and bipolar disorders I and II. The FDA has established a PDUFA date for this decision of Jan. 5, 2022.