BioXcel Therapeutics said it is facing an August 21 deadline to enter into definitive agreements for a transaction acceptable to its Oaktree-affiliated lenders, while management says the company’s $13.8 million of cash, cash equivalents, and restricted cash as of June 30 is sufficient to fund operations and liquidity requirements only through the end of August 2026.
The deadline was established through the Twelfth Amendment to BioXcel’s credit agreement on August 10. Under the amendment, the company must enter into definitive agreements by August 21 covering one or more transactions acceptable to the lenders that either repay all obligations under the credit agreement or constitute an alternative capital solution on terms acceptable to the lenders. The amendment also lowered BioXcel’s minimum cash liquidity covenant to $3 million from $6.25 million.
Oaktree Fund Administration manages the senior secured facility, with lenders consisting of affiliates of Oaktree Capital Management. BioXcel reported approximately $107.2 million of aggregate principal indebtedness outstanding under the credit agreement as of June 30.
BioXcel’s liquidity position has deteriorated as it continues to fund drug development and service its debt. Cash, cash equivalents and restricted cash declined to $13.8 million at June 30 from $28.8 million at the beginning of the year. The company used approximately $17.9 million of cash in operations during the first six months, an improvement from $24.6 million of operating cash use in the comparable 2025 period.
At June 30, BioXcel also reported negative working capital of approximately $108.4 million and a stockholders’ deficit of approximately $115.5 million. First-half net loss totaled $27.4 million compared with $26.4 million a year earlier. Management concluded that the combination of losses, negative operating cash flow, debt obligations and limited liquidity raises substantial doubt about the company’s ability to continue as a going concern.
The company and its board have retained advisors and are pursuing a range of strategic alternatives. Potential outcomes include restructuring or refinancing debt, obtaining additional debt or equity financing, selling or licensing all or part of BioXcel’s assets, completing a merger or sale of the company, or pursuing other strategic transactions. As of the filing, BioXcel had no commitment for a specific transaction.
The company has also begun contingency planning with its lenders if it does not complete an acceptable strategic transaction by August 21. Those discussions include the potential availability of debtor-in-possession financing. BioXcel said it has not decided to commence a bankruptcy proceeding, but disclosed that if it cannot complete a strategic transaction or obtain sufficient financing, it may need to seek protection under the U.S. Bankruptcy Code.
BioXcel continues to generate limited commercial revenue from IGALMI. Second-quarter net product revenue increased to $182,000 from $120,000 a year earlier as the company’s commercial operation concentrates on hospitals and integrated delivery networks through its Corporate Account Director strategy. First-half IGALMI revenue totaled $388,000, up from $288,000.
The company has simultaneously reduced certain development spending. Q2 R&D expense fell 69% to approximately $3.16 million from $10.26 million, including a 95% decline in clinical trial expense following completion of the SERENITY At-Home pivotal Phase 3 safety study and its associated correlation study.
The August 21 requirement therefore represents a near-term financing and strategic inflection point for BioXcel. Even if it meets the immediate deadline, the company says it will need substantial additional capital to service its debt obligations and continue its development and commercialization programs.
