Analyst Reiterates This Alzheimer's Candidate As Top Idea For 2023 - BioXcel Therapeutics (NASDAQ:BTAI)

Mizuho raised the price target on BioXcel Therapeutics Inc BTAI from $24 to $38, with a Buy rating.
Since the analyst's previous model update last December, BTAI shares have meaningfully outperformed vs. its peers (+61% vs +8% for the XBI), based on increased bullishness ahead of the first Phase 3 data for lead asset Igalmi/BXCL501 in Alzheimer's disease (AD) agitation (expected in 1H23).
The analyst revisited the BTAI model based on BXCL501 in schizophrenia, bipolar disorder, AD, and major depressive disorder (MDD), raising the peak sales estimate to $1.2 billion (vs. prior $936 million), with the most significant driver being a ~30% increase in AD agitation sales forecast to $814 million.
The stock outperformance comes amid investor enthusiasm, with five more clinical data events expected this year.
Most recently, BioXcel announced topline data from its Phase 2 trial of BXCL701 combined with Merck & Co Inc's MRK Keytruda (pembrolizumab) in small cell neuroendocrine metastatic castration-resistant prostate cancer.
BXCL701 combo demonstrated a favorable response rate in this difficult-to-treat cancer.
Price Action: BTAI shares are up 8.34% at $33.25 on the last check Wednesday.