BioXcel Therapeutics (BTAI) said Thursday its dissolvable tablet significantly reduced agitation symptoms in Alzheimer's patients. But BTAI stock cratered after revealing a fraud investigation at its biggest study site.
In premarket trading on today's stock market, BioXcel shares plummeted 56.8% near 7.60.
The company said its treatment cut down on agitation symptoms by 39% relative to a placebo in patients with mild to moderate dementia. But in a Securities and Exchange Commission filing, BioXcel said it's investigating a fraudulent email chain from a clinical site that enrolled 40% of the patients in the study.
Chief Executive Vimal Mehta says the investigation won't change BioXcel's timeline for the tablet in the Alzheimer's population.
"This was a reporting requirement because we found something which was unfortunate and we wanted to make sure we provided the full disclosure around it," he told Investor's Business Daily. "All the work we have done in terms of our own audit, our processes, our data that we are reporting, we wouldn't report it if we didn't have the confidence that we believe in it."
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