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Why BioXcel Therapeutics Stock Is Sinking Today

By Keith Speights – Oct 14, 2021 at 11:39AM

Key Points

  • BioXcel revealed in an SEC filing that chief commercial officer William Kane resigned last week.
  • The unexpected departure rattled investors, with the biotech stock falling more than 15%.
  • BioXcel awaits an FDA approval for its lead pipeline candidate by January.

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The company's chief commercial officer resigned.

What happened

Shares of BioXcel Therapeutics (BTAI 3.31%) 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.

So what

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.

A person holding a briefcase walking through a doorway next to an exit sign.

Image source: Getty Images.

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.

Now what

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. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

BioXcel Therapeutics Stock Quote
BioXcel Therapeutics
$18.73 (3.31%) $0.60

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