What happened

Investors were good to BioXcel Therapeutics (BTAI 2.91%) stock this week, particularly after a top-shelf investment bank upgraded its recommendation on the shares. All told, in the Monday to Friday trading period, the company's stock price rose by more than 16%, according to data compiled by S&P Global Market Intelligence.

So what

That upgrade hit the headlines early Thursday morning after which investors enthusiastically piled into BioXcel. The upgrader was Goldman Sachs' (GS 2.90%) Corinne Jenkins, who now feels the stock is neutral. Previously, her recommendation was sell. Jenkins also upped her price target to $16 per share, quite some distance ahead of her previous $10.

BioXcel is an ambitious biotech focusing on neuroscience and immuno-oncology treatments. In April it received its first drug approval, for its Igalmi anti-anxiety product that treats patients with bipolar disorder and schizophrenia.

Jenkins' upgrade, though, is based largely on BioXcel's pipeline. The company is seeking label expansions for Igalmi, for example, as a treatment for extreme anxiety in Alzheimer's patients. At the moment, it's standing in front of no less than three phase 3 clinical-trial readouts for its developmental programs, and the analyst sees good potential for success in each.

Now what

Investors are also likely enthusiastic about the prospects for Igalmi, which BioXcel has stated could bring in as much as $15 billion. There's quite some yardage to cover before the treatment enjoys that level of sales; the company booked only $137,000 in net revenue in the third quarter, but it's early days yet. The market clearly sees big dollar signs in Igalmi's future.