Key Highlights

  • BioXcel Therapeutics shares settled down 74% at $0.18.
  • The company filed Chapter 11 and put nearly the whole company up for sale.
  • Teva is the stalking-horse bidder, led by the IGALMI (dexmedetomidine) Franchise and its pending at-home use application.
  • The bid totals $57.5 million upfront, with milestones that can take the package to $67.5 million, supported by $19 million in DIP financing.

BioXcel Therapeutics, Inc. (NASDAQ: BTAI) shares settled down 74% at $0.18 on Monday, August 31, 2026, after the company filed Chapter 11 and put nearly all of its Assets up for sale.

What Happened

Teva is the stalking-horse bidder for nearly all assets, led by the IGALMI (dexmedetomidine) franchise and the pending supplemental application for at-home use. The bid structure totals $57.5 million upfront plus milestones that can take the package to $67.5 million, with $19 million in DIP financing intended to fund operations through the sale process.

IGALMI was approved for acute agitation in schizophrenia and bipolar disorder in a healthcare setting; the at-home label represented the larger commercial opportunity if the FDA approved it. In bankruptcy, that asset becomes inventory for Teva rather than a pipeline asset for existing shareholders.

Market Reaction

Shares fell sharply as the Stalking-Horse Bid sets a floor in the Bankruptcy auction while Equity holders sit behind DIP lenders and other creditors in the payment stack, with the market pricing residual equity value close to zero.

Outlook

The bankruptcy auction and sale order process represent the next steps for BioXcel Therapeutics, determining whether any value remains for the estate beyond the Teva stalking-horse bid.