BioXcel Therapeutics has entered into an agreement with Teva Pharmaceuticals International GmbH for the sale of substantially all of its assets as the biotechnology company begins voluntary Chapter 11 bankruptcy proceedings in the United States.
The proposed transaction includes BioXcel’s approved product IGALMI® (dexmedetomidine) sublingual film and its related supplemental New Drug Application (sNDA) for BXCL501. The application is seeking approval for potential at-home use in adults with acute agitation associated with schizophrenia or bipolar I or II disorder.
At the same time, BioXcel Therapeutics and its subsidiaries, OnkosXcel Therapeutics, LLC and OnkosXcel Employee Holdings, LLC, have filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.
The Chapter 11 process is intended to support a court-supervised sale of the company’s assets. Teva will act as the sole “stalking horse bidder” under the asset sale agreement, providing an initial offer that can serve as a baseline during the auction process.
Other interested parties may submit competing offers for some or all of BioXcel’s assets. The company plans to conduct the sale under Section 363 of the U.S. Bankruptcy Code, which allows assets to be sold through a court-supervised process. BioXcel said its goal is to achieve the highest or otherwise best value for its stakeholders.
Vimal Mehta, Ph.D., Chief Executive Officer of BioXcel Therapeutics, said the company selected the process following a review of strategic alternatives. He said BioXcel’s immediate focus is on completing an efficient sale process while continuing to support its stakeholders and ongoing regulatory activities.
The company’s sNDA for BXCL501 remains under review, with a PDUFA action date of November 14, 2026. BioXcel said it intends to continue supporting the application throughout the Chapter 11 process.
To maintain operations during the restructuring and sale process, BioXcel has filed several motions with the bankruptcy court. These include requests to continue paying employee wages and benefits, maintain cash management systems, support customer and patient programs, and continue insurance coverage.
BioXcel has also secured a commitment for $19 million in debtor-in-possession, or DIP, financing from its existing secured lenders. Subject to court approval, the financing is expected to provide the company with liquidity to continue normal operations, fund the Chapter 11 process, and meet financial obligations arising after the bankruptcy filing.
Importantly, IGALMI remains commercially available. BioXcel said it plans to continue supplying the medicine and supporting patients, healthcare providers, and trade partners during the sale process.
The proposed acquisition gives Teva an opportunity to acquire BioXcel’s key commercial and development assets, including IGALMI and the potential outpatient expansion of BXCL501. The final outcome, however, will depend on the court-supervised auction process and any competing bids.
BioXcel’s Chapter 11 petition was filed in the U.S. Bankruptcy Court for the District of Delaware under Case No. 26-11360.