Piper Sandler maintains Biohaven stock with $76 target

On Monday, Piper Sandler reiterated its Overweight rating and $76.00 price target on Biohaven Pharmaceutical (TADAWUL:2070) Holding (NYSE:BHVN) shares, representing significant upside from the current price of $33.32. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 2.89 and holds more cash than debt on its balance sheet. The firm’s analyst highlighted the company’s recent Q4 2024 update and the release of additional Phase 1 multiple ascending dose (MAD) data for its IgG degrader, BHV-1300. The data showed that a 1000 mg weekly dose of BHV-1300 resulted in a median 80% reduction in IgG levels at four weeks, with a clean safety profile. This result aligns with the 70-80% reduction benchmark established by earlier non-human primate data.

Biohaven plans to initiate trials for BHV-1300 in the treatment of Graves’ disease around mid-2025. Piper Sandler believes the positive data for BHV-1300 not only supports its advancement but also bodes well for other degraders in the company’s pipeline.

However, the update also included news that Biohaven’s Kv7 activator, BHV-7000, did not meet efficacy endpoints in a Phase 3 trial for bipolar disorder. This outcome casts some doubt on the company’s ambition for BHV-7000 to be a best-in-class treatment across a range of neuropsychiatric disorders. InvestingPro analysis reveals that while the company’s stock has shown significant volatility, with additional ProTips and detailed metrics available to subscribers, analysts maintain a strong buy consensus with a median price target well above current levels.

Despite this setback, Piper Sandler maintains a positive outlook on Biohaven due to a number of potential catalysts expected in 2025. Among these is the anticipated launch of a treatment for spinocerebellar ataxia (SCA), which contributes to the firm’s recommendation for investors to continue buying Biohaven shares. While trading at a relatively high Price/Book multiple of 11.9, the company’s strong cash position and pipeline potential support its current valuation.

In other recent news, Biohaven Ltd. has reported significant advancements in its clinical programs, particularly with its potential treatment for spinocerebellar ataxia (SCA). The U.S. Food and Drug Administration (FDA) has granted Priority Review status to Biohaven’s New Drug Application for troriluzole, which could become the first approved treatment for SCA, a rare neurodegenerative disease. This decision follows positive results from a real-world evidence study demonstrating a substantial reduction in disease progression. Additionally, Deutsche Bank (ETR:DBKGn) has initiated coverage on Biohaven with a Buy rating and a price target of $65, citing the company’s promising clinical assets and leadership.

In other developments, Biohaven is progressing with its Phase 1 study of BHV-1300, which has shown up to an 84% reduction in total immunoglobulin G (IgG) levels, indicating potential new treatment options for autoimmune diseases. The study highlighted the drug’s rapid and sustained effects, with no serious adverse events reported. Meanwhile, Biohaven’s market presence has grown significantly, with its valuation rising to between $3.5 billion and $4 billion, reflecting investor confidence in its strategic direction. The company’s financial position remains strong, with approximately $642 million in cash providing a year of financial runway. These recent developments underscore Biohaven’s ongoing efforts to advance its innovative treatments and capitalize on market opportunities.

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