BioXcel Therapeutics, Inc. (NASDAQ:BTAI), a pharmaceutical company specializing in drug development with a current market capitalization of $17.2 million, announced on Wednesday the expansion of its Board of Directors and the appointment of Dr. Rajiv Patni as a new board member.
According to InvestingPro analysis, the company currently operates with a significant debt burden and faces profitability challenges. The addition, effective January 15, 2025, increases the board's size from seven to eight directors.
Dr. Patni, a seasoned professional in the biopharmaceutical industry with a broad background in global product development across various therapeutic areas, has taken on the role of a Class II director. His term is set to expire at the company's annual stockholders' meeting in 2026, unless he leaves the position sooner.
Currently serving as the CEO of Judo Bio and a board member of Quince Therapeutics, Inc. (NASDAQ:QNCX), Dr. Patni brings a wealth of experience to BioXcel Therapeutics. His appointment comes at a crucial time, as InvestingPro data shows the company's stock has declined by 86% over the past year, with a total debt of nearly $105 million. His previous roles include Chief Research and Development Officer at Reata Pharmaceuticals (NASDAQ:RETA), as well as executive positions at Global Blood Therapeutics (NASDAQ:GBT), Portola Pharmaceuticals, and Adamas Pharmaceuticals (NASDAQ:ADMS).
According to the company, Dr. Patni's extensive knowledge in biopharmaceutical product development is expected to provide valuable insights to the Board of Directors. He will be compensated under the company's Non-Employee Director Compensation Program, receiving both cash and equity-based awards.
In connection with his board service, Dr. Patni will also be granted an option to purchase 44,000 shares of BioXcel Therapeutics' common stock at an exercise price of $0.3465. This option is set to vest over a three-year period, contingent upon his ongoing service on the board.
In other recent news, BioXcel Therapeutics has announced significant changes to its executive compensation structure and credit agreements. The pharmaceutical company has also issued new warrants to lenders and is actively exploring strategic financing options. Amid financial challenges, the company's top executives, including CEO Vimal Mehta and CFO Richard Steinhart, have agreed to reduced cash compensations for 2025.
Analysts from BofA Securities and Canaccord Genuity (TSX:CF) have adjusted their outlooks on the company's stock, with BofA downgrading it from Neutral to Underperform and Canaccord maintaining a Buy rating but reducing the price target.
In addition, BioXcel reported a decrease in Q3 2024 net revenue to $214,000, but a nine-month revenue increase to $1.9 million. The company is advancing with clinical trials, including two pivotal Phase 3 trials for drug candidate BXCL501 and the SERENITY At-Home study for Igalmi.
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