BioXcel Therapeutics (NASDAQ:BTAI) stock is taking a beating on Monday after the biopharmaceutical company announced layoffs.
This has BioXcel Therapeutics cutting over 50% of its workforce. As a result, the company’s total number of workers will drop from 190 to about 80 after the job cuts. This comes as it focuses on the development of BXCL501, a drug for the treatment of agitation tied to schizophrenia and bipolar disorders in patients with Alzheimer’s disease.
With this plan, BioXcel Therapeutics will reduce its cash spend by 50%. This will see it spend around $80 million to keep its business going. Based on its current cash on hand, the company can continue operations about midway through 2024.
How This Affects BTAI Stock
Investors aren’t happy about this news from the company, and that makes sense. It comes with the suspension of clinical trials for other drugs in development. These hamper its pipeline of potential treatments and are harming investor morale.
As a result, we’re seeing heavy trading of BTAI stock as investors sell their shares today. That has more than 4.3 million shares of the stock changing hands as of this writing. For the record, the company’s daily average trading volume is about 2.7 million shares.
BTAI stock is down 45.7% as of Monday morning and is down 81.3% since the start of the year.
There’s more stock market news traders will want to know about below!
We’ve got all of the hottest stock market news that traders need to know about on Monday! A few examples of that include why shares of Okta (NASDAQ:OKTA) stock got an upgrade, Nikola (NASDAQ:NKLA) announcing a massive truck recall, and the latest on the AMC Entertainment (NYSE:AMC) stock conversion plan. Traders can read up on all of these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
