Intel stock spikes after report of possible US government stake
Investing.com - H.C. Wainwright lowered its price target on Biohaven Pharmaceutical (TADAWUL:2070) Holding (NYSE:BHVN) to $30.00 from $54.00 on Tuesday, while maintaining a Buy rating on the stock. The move comes as the company’s shares have declined over 68% in the past six months, according to InvestingPro data, with the stock currently trading near its 52-week low of $12.79.
The firm cited potential equity dilution as a key factor in its decision, noting that Biohaven’s Oberland Capital debt facility covers only part of the expenses related to troriluzole and other R&D programs, likely necessitating additional capital raising that could act as an overhang on shares.
H.C. Wainwright reduced its EV/sales multiple from 6.7x to 5x in its valuation model, reflecting more conservative expectations for the company’s near-term commercial prospects.
Biohaven’s lead candidate troriluzole for spinocerebellar ataxia (SCA) remains on track for its PDUFA date in Q4 2025, with clinical data showing 50-70% slowing of disease progression compared to real-world evidence studies. There are currently no FDA-approved therapies for SCA, which affects approximately 15,000 patients in the US.
The company is building a commercialization team of approximately 60 staff with 85% in customer-facing roles for the potential US launch, though H.C. Wainwright notes that as a rare disease treatment, troriluzole may produce limited profits during its first 1-2 years on market. With a market capitalization of $1.42 billion, InvestingPro analysis reveals 12 additional key insights about Biohaven’s financial health and market position, available in the comprehensive Pro Research Report.
In other recent news, Biohaven reported research and development expenses of $184.4 million for the second quarter, surpassing the average analyst estimate of $173.9 million. This figure represents a 41% decrease from the same period last year. Meanwhile, selling, general, and administrative expenses increased by 44% year-over-year to $27.3 million, slightly below the estimated $28.1 million. On the analyst front, H.C. Wainwright maintained a Buy rating with a $54 price target, while Morgan Stanley (NYSE:MS) reiterated its Overweight rating with a $63 price target. TD Cowen also confirmed a Buy rating, maintaining a $75 price target. These endorsements followed Biohaven’s recent R&D Day, where the company presented updates on various programs, including new data from its degrader platform and advancements in oncology and neuroscience. Biohaven is preparing for the commercial launch of Troriluzole, with a PDUFA decision expected in the fourth quarter of 2025. Additionally, Biohaven announced significant progress in developing treatments for IgA nephropathy and Graves’ Disease, with pivotal trials planned for BHV-1400 and BHV-1300 in 2025 and 2026, respectively.
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