BioXcel Therapeutics, Inc. (NASDAQ:BTAI) shares plunged on Friday as the company commenced voluntary Chapter 11 proceedings tied to a court-supervised asset sale process.

The stock’s slide stands out even within a volatile health care tape, with BioXcel flagged among Friday’s pre-market movers at -61.8% to $0.27, with an implied market cap of about $22.5 million.

BioXcel plunges on Teva asset sale, Chapter 11

BioXcel Therapeutics entered into an asset sale agreement with Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd. (NYSE:TEVA).

The deal covers all assets, including IGALMI (dexmedetomidine) sublingual film and a pending supplemental NDA for BXCL501’s potential at-home use.

Alongside the agreement, the company and certain subsidiaries began voluntary Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware to run a court-supervised "363" auction, with Teva set as the stalking horse bidder.

“Following a comprehensive review of strategic alternatives, we believe this option provides a clear framework to pursue a value-maximizing transaction,” stated Vimal Mehta, Ph.D., Chief Executive Officer of BioXcel Therapeutics.

“Our priority is to execute a disciplined and efficient sale process while supporting all of our stakeholders and continuing to support the sNDA with a PDUFA date of November 14, 2026.

Technical Setup: BTAI Trades Well Below Key Moving Averages

At 27 cents, BioXcel Therapeutics remains well below its 20-day, 50-day, 100-day and 200-day moving averages, underscoring persistent technical weakness.

The wide gap underscores persistent selling pressure and suggests any rebound could face significant overhead resistance before reaching longer-term trend levels.

Momentum also remains weak. MACD is below its signal line, with a negative histogram, indicating fading upside momentum.

• Key Resistance: 70 cents — a former 52-week low area that could now act as overhead resistance following the breakdown.

BioXcel Therapeutics: IGALMI And BXCL501 Pipeline

BioXcel Therapeutics is a clinical-stage biopharmaceutical company using artificial intelligence to develop treatments in neuroscience and immuno-oncology.

Its pipeline includes BXCL501 for agitation across neurological disorders and BXCL701, an investigational therapy for aggressive prostate cancer and other tumors.

Its commercial product, IGALMI, is FDA-approved for acute agitation associated with schizophrenia or bipolar I or II disorder in adults.

BTAI stock today

BTAI Stock Price Activity: BioXcel Therapeutics shares were down 73.33% at 19 cents at last check on Friday, according to Benzinga Pro data.

Image via Shutterstock/ Doidam 10