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On Wednesday, Jefferies analyst Amy Li adjusted the price target for Biohaven Pharmaceutical (TADAWUL:2070) Holding (NYSE:BHVN) stock, reducing it slightly from $64.00 to $63.00. Despite the price target reduction, the firm maintained a Buy rating on the company’s shares. Currently trading at $31.37, the stock has seen a significant decline of about 16% year-to-date. The adjustment followed Biohaven’s recent quarterly earnings report, which included updates on several of its programs. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $54 to $77.
Li’s analysis highlighted the positive aspects of BHV-1300, noting approximately an 80% median reduction in IgG in the Multiple Ascending Dose study, along with better subcutaneous variability and a clean safety profile. However, concerns were raised regarding the 1000mg dose of BHV-1300, which was higher than expected, leaving some questions unanswered. Despite these issues, Li still considers BHV-1300 a viable subcutaneous option in the immunology and inflammation (I&I) sector.
In contrast, the performance of BHV-7000 did not come as a surprise to the analyst, as the Bi-Polar Depression (BPD) Phase 2/3 trial did not meet its endpoints. Li emphasized that this outcome should not be seen as indicative of the drug’s potential efficacy in treating epilepsy. Additionally, the analyst maintained a neutral stance on the prospects of BHV-7000 for Major Depressive Disorder (MDD), describing the outlook as "50/50."
The report concluded with Li reiterating a Buy rating for Biohaven stock, while setting the new price target at $63. This valuation reflects the analyst’s ongoing optimism about the company’s drug development pipeline, despite the recent adjustments in expectations.
In other recent news, Biohaven Pharmaceutical Holding has reported significant advancements in its clinical development programs. The company shared promising data from its Phase 1 study of BHV-1300, an IgG degrader, showing up to an 84% reduction in IgG levels with a median reduction of 80% after weekly doses. These results have been well-received, with firms like TD Cowen and Piper Sandler maintaining a positive outlook, reiterating Buy and Overweight ratings with price targets of $75 and $76, respectively. Meanwhile, RBC Capital continues to endorse Biohaven with an Outperform rating and a $61 price target, despite a setback in a bipolar disorder trial. Bernstein adjusted its price target from $73 to $57 following mixed results in a degrader Phase 1 study but maintained an Outperform rating. The analysts at Bernstein remain optimistic about the potential for Biohaven’s small chain antibody regulatory event, estimating a 75% chance of success. Biohaven plans to initiate a Phase 2 trial for BHV-1300 in Graves’ disease by mid-2025, which could further validate the drug’s efficacy. Despite challenges, the company’s diverse pipeline continues to garner attention from analysts who see significant opportunities for growth and value creation.
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