New Haven-based BioXcel Therapeutics Inc. announced Tuesday the creation of a new wholly-owned subsidiary which will focus on developing medications to combat cancer.
The subsidiary, named OnkosXcel Therapeutics Inc., will concentrate on oncology, including the development of BXCL701, an anti-tumor drug candidate.
BXCL701 is being evaluated in combination with KEYTRUDA in an ongoing Phase 2 trial in metastatic castration-resistant prostate cancer patients. In February, the company indicated that patients in the trial were showing improvement after treatment. More data on its efficacy is anticipated later this year.
Vimal Mehta, CEO of BioXcel Therapeutics, said he believes the formation of OnkosXcel will “unlock significant value for both our neuroscience and immuno-oncology franchises.”
“For our immuno-oncology assets, we believe this new structure will sharpen our strategic focus and help us further maximize the value of our oncology portfolio,” Mehta said, in an announcement.
He called it a logical step for BioXcel Therapeutics, which recently garnered FDA approval for the drug IGALMI, developed for the treatment of agitation in adults with schizophrenia and bipolar disorder. It is also being evaluated for treating individuals with Alzheimer’s disease and depression.
BXCL701, delivered orally, has been evaluated in approximately 800 healthy subjects and cancer patients to date. Going forward, OnkosXcel plans to explore the BXCL701 clinical development program in blood malignancies and other solid tumors.
Like BioXcel, OnkosXcel Therapeutics will also use artificial intelligence approaches to develop therapeutics.
Also this week, BioXcel announced new strategic financing agreements, with funds managed by Oaktree Capital Management L.P. and Qatar Investment Authority.
Oaktree and QIA will provide up to $260 million in gross funding to support commercial activities related to IGALMI and the expanded clinical development of BXCL501, which will include a Phase 3 program for the treatment of patients with Alzheimer’s disease who are experiencing agitation.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
