Oaktree, Qatar Investment Inject $260M In BioXcel To Fund Commercialization Of Schizophrenia Med

BioXcel Therapeutics Inc BTAI received strategic financing from Oaktree Capital Management and Qatar Investment Authority (QIA) for gross funding of $260 million.
The Company will use the funding to support the commercial activities of Igalmi (dexmedetomidine) sublingual film indicated for the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder.
In addition, the financing will support the expansion of clinical development efforts of BXCL501, which includes a pivotal Phase 3 program for the acute treatment of agitation in patients with Alzheimer's Disease (AD), and for the Company's other neuroscience and immuno-oncology clinical programs.
The long-term strategic financing process was led by Oaktree and included:
Credit Agreement: Up to $135 million in a delayed draw term loan.
Revenue Interest Financing Agreement: Up to $120 million in capped revenue interest on net sales of Igalmi and any other future BXCL501 products.
Equity Investment: Up to $5 million purchase of BioXcel shares.
Under the agreement, BioXcel will receive $100 million in the first tranches of the strategic financing following FDA approval of BXCL501.
Complete execution of this financing would result in a cash runway into 2025 for the Company.
As of December 31, 2021, cash and cash equivalents totaled approximately $233.0 million.
Price Action: BTAI shares are up 1.02% at $14.92 during the market session on the last check Tuesday.