BioXcel Therapeutics, Inc. (Nasdaq: BTAI) has entered into an asset sale agreement with Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd., and filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, Case No. 26-11360.

The agreement covers substantially all of BioXcel's assets, including its approved drug IGALMI (dexmedetomidine) sublingual film and a pending supplemental New Drug Application for BXCL501, which targets at-home treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults. The FDA has assigned a PDUFA target action date of November 14, 2026, for that application.

Teva will serve as the "stalking horse" bidder in a court-supervised Section 363 auction process, establishing a baseline offer against which other bids may be submitted. BioXcel's subsidiaries, OnkosXcel Therapeutics, LLC and OnkosXcel Employee Holdings, LLC, are included in the Chapter 11 filing.

To fund operations during the proceedings, BioXcel has secured a commitment for $19 million in debtor-in-possession financing from its existing secured lenders, subject to court approval. The company stated the financing is expected to cover ordinary course operations and Chapter 11 process costs.

BioXcel has filed motions seeking court approval to continue paying employee wages and benefits, maintain its cash management system, and sustain customer and patient support programs. The company stated that IGALMI remains commercially available and that supply to patients, prescribers, and trade partners will continue during the process.

"Following a comprehensive review of strategic alternatives, we believe this option provides a clear framework to pursue a value-maximizing transaction," said Vimal Mehta, Ph.D., Chief Executive Officer of BioXcel Therapeutics.

BioXcel's legal counsel is Cooley LLP and Young Conaway Stargatt & Taylor, LLP. Its financial advisor is MERU, LLC, and its investment banker is MTS Health Partners, L.P. Stretto, Inc. is serving as claims and noticing agent.