What happened
Neuroscience and immuno-oncology drugs specialist BioXcel Therapeutics (BTAI -3.69%) was a stock on the move this week. Happily, that direction of movement was upwards, as according to data provided by S&P Global Market Intelligence the shares gained nearly 14% this week. A board of directors appointment and a new, bullish analyst note were two key reasons for this.
So what
On Tuesday -- the first day of the trading week because of Monday's July 4th holiday -- BioXcel announced that it had appointed Michael Miller to its board of directors. Miller is a seasoned healthcare industry veteran, with a long resume that most recently included a stretch as executive vice president of U.S. commercial at Jazz Pharmaceuticals.
The following day, Mizuho Securities initiated coverage on BioXcel stock. Happily for the company, analyst Graig Suvannavejh has a positive take on its prospects. He has slapped a buy recommendation on the shares, at a target price of $19 apiece.
The foundation of Suvannavejh's optimism is Igalmi, BioXcel's first commercialized product. This treatment targets acute agitation deriving from schizophrenia and bipolar disorder, and after a somewhat torturous route through the regulatory process won Food and Drug Administration (FDA) approval in April.
Now what
Now that Igalmi is on the market, BioXcel is "transitioning to a revenue-generating story," the analyst wrote in his inaugural note on the stock. Suvannavejh also pointed out that upcoming data from a phase 3 trial of Igalmi in the treatment agitation suffered by Alzheimer's disease is important, as that demographic offers a notably better market opportunity.
