Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
BioXcel Therapeutics had a gross margin of -37.38% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
BioXcel Therapeutics Gross Margin % Related Terms
BioXcel Therapeutics Gross Margin % Historical Data
* Premium members only.
The historical data trend for BioXcel Therapeutics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BTAI vs IXHL, SCYX, INIS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, BioXcel Therapeutics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BioXcel Therapeutics Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, BioXcel Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BioXcel Therapeutics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
BioXcel Therapeutics (BTAI) has a Gross Margin % of -37.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BioXcel Therapeutics and its competitors. Over the past decade, BioXcel Therapeutics' Gross Margin % has ranged from 5.43 to 94.67. According to the industry distribution chart, BioXcel Therapeutics ranks #668 out of 936 companies in the Drug Manufacturers industry, placing it in the top 71.4%.
Is BioXcel Therapeutics' Gross Margin % too high?
BioXcel Therapeutics' current Gross Margin % is -37.38%. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 94.67. Based on the distribution chart, BioXcel Therapeutics ranks #668 out of 936 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, BioXcel Therapeutics has a GF Score™ of 14/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BioXcel Therapeutics' Gross Margin % compare to IXHL and SCYX?
According to the Drug Manufacturers industry distribution chart, BioXcel Therapeutics ranks #668 out of 936 companies for Gross Margin %. This places BioXcel Therapeutics in the lower half of its industry. The industry median Gross Margin % is 48.50. Historically, BioXcel Therapeutics' own Gross Margin % has ranged from 5.43 to 94.67 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.50, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on BioXcel Therapeutics and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BioXcel Therapeutics's current Gross Margin % is -37.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BioXcel Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, BioXcel Therapeutics (BTAI) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.67, compared to a current price of $1.38 — trading 106% above its estimated fair value. The current Gross Margin % is -37.38%. BioXcel Therapeutics' overall GF Score™ is 14/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For BioXcel Therapeutics (BTAI), the current Gross Margin % is -37.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BioXcel Therapeutics (BTAI) Overvalued in 2026?
Based on GuruFocus' analysis, BioXcel Therapeutics stock appears to be overvalued.
The current stock price of $1.38 is trading 106% above its estimated GF Value™ of $0.67.
GuruFocus considers BioXcel Therapeutics to be Significantly Overvalued.
Key valuation signals for BTAI:
Gross Margin %: -37.38%
GF Value™: $0.67 vs. price of $1.38 (106% above fair value)
No single metric tells the full story. See the BTAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BioXcel Therapeutics Inc is a clinical-stage biopharmaceutical company. The company is focused on drug development utilizing novel artificial intelligence (AI) to identify the next wave of medicines across neuroscience and immuno-oncology. The pipeline products of the company are-BXCL501, being evaluated as a potential treatment for agitation associated with multiple neurological disorders and BXCL701, an investigational oral innate immune activator for the treatment of aggressive forms of prostate cancer and other solid and liquid tumors. The company's commercial product, IGALMI (developed as BXCL501) is a proprietary, sublingual film formulation of dexmedetomidine approved by the FDA for the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults.
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