🔒New Haven biotech BioXcel files for bankruptcy, agrees to potential $145M sale

New Haven-based BioXcel Therapeutics, which has endured years of losses while trying to expand the market for its anti-agitation drug Igalmi, has filed for Chapter 11 bankruptcy protection and agreed to sell substantially all its assets to pharmaceutical company Teva in a deal potentially worth up to $145 million.

BioXcel and two subsidiaries filed voluntary bankruptcy petitions Thursday in U.S. Bankruptcy Court in Delaware, according to a regulatory filing. The company plans to continue operating during the court-supervised sale process.

Under an asset purchase agreement, Teva would pay $57.5 million in upfront cash and assume certain BioXcel liabilities. BioXcel, which reported having 29 employees at the end of 2025, could receive up to an additional $67.5 million based on the outcome and timing of its pending application for expanded at-home use of Igalmi.

The agreement also provides for up to $20 million in additional payments if the drug reaches certain sales thresholds after the sale closes.

“Following a comprehensive review of strategic alternatives, we believe this option provides a clear framework to pursue a value-maximizing transaction,” said BioXcel CEO Vimal Mehta in a written statement.

Teva’s offer will serve as a “stalking horse” bid, which establishes a minimum price for BioXcel’s assets as the company seeks higher or otherwise better offers through a bankruptcy auction. The proposed sale and bidding process require court approval.

The assets covered by the agreement include Igalmi and BioXcel’s pending application seeking U.S. Food and Drug Administration approval to allow the drug to be used at home.

Igalmi, a thin film that dissolves in the mouth, is currently approved to treat acute agitation in adults with schizophrenia or bipolar disorder under the supervision of a healthcare provider. The drug will remain commercially available during the bankruptcy proceedings, BioXcel said.

The bankruptcy filing follows BioXcel’s May announcement that it was exploring strategic alternatives, including a potential sale, merger, licensing agreement or recapitalization, as it continued to post losses and burn through cash.

BioXcel reported $206,000 in first-quarter revenue, up from $168,000 a year earlier, while its net loss widened to $12.7 million from $7.3 million. Its cash, cash equivalents and restricted cash declined to $17.2 million as of March 31, from $28.8 million at the end of 2025.

The company has also undergone multiple rounds of layoffs in recent years and completed a 1-for-16 reverse stock split in February 2025 to maintain its Nasdaq listing.

Founded in 2017 as a spinoff from data analytics firm BioXcel Corp., BioXcel Therapeutics uses artificial intelligence to identify existing drugs that could be repurposed to treat other conditions.

The FDA has set a Nov. 14 target date for deciding whether to approve Igalmi for at-home use. The outcome and timing of that decision would help determine how much BioXcel ultimately receives from Teva.

To finance operations during bankruptcy, the company is seeking court approval for up to $19 million in new loans from affiliates of Oaktree Capital Management and the Qatar Investment Authority, which are also existing BioXcel lenders.

BioXcel has also asked the court for permission to continue paying employee wages and benefits and maintain its patient-support, insurance and cash-management programs during the proceedings.

The company appointed Samir Saleem as chief restructuring officer to assist with the sale, restructuring and operations. The agreement allows Teva or BioXcel to terminate the deal under certain circumstances, including if it is not completed by Oct. 30.