BioXcel files for Chapter 11 bankruptcy, selling assets to Teva for up to $125 M

BioXcel Therapeutics announced it has filed for Chapter 11 bankruptcy and plans to sell all of its assets.

Teva Pharmaceuticals will serve as the stalking horse bidder, proposing an upfront payment of $57.5 million and up to $67.5 billion in milestone payments as the auction process begins.

The biotech’s lead candidate, Igalmi (BXCL501), is being developed to treat agitation in adults with schizophrenia or bipolar I or II disorder, and the company is seeking FDA approval for at‑home use with a decision expected on Nov. 14. BioXcel is also exploring the drug for agitation associated with Alzheimer’s dementia.

CEO Vimal Mehta said the bankruptcy filing follows a comprehensive review of strategic alternatives and provides a clear framework for a value‑maximizing transaction.