Biohaven Pharmaceutical Holding Co (BHVN) is a commercial-stage biopharmaceutical company focused on innovative therapies for patients with late-stage neurological and neuropsychiatric diseases, including rare disorders. Biohaven’s portfolio includes FDA-approved Nurtec ODT (rimegepant) designed for the treatment of migraine along with a broad pipeline of late-stage product candidates. Shares of the company have surged more than 18% in the past five days.
Recently, during certain investor meetings with Biohaven’s management, Mizuho Securities analyst Vamil Divan commented on the company. He observed that management sounded confident on Nurtec ODT upside in the coming quarters, after a significant pre-announced 2Q21 sales beat by the company.
According to the analyst, at the meetings, investors were focused more on discussions related to Biohaven’s pipeline and the company’s longer-term outlook and strategy. Among others, management mentioned risks associated with its troriluzole and verdiperstat programs and said that it foresees multiple readouts over the next 12 months.
Specifying his estimates, the analyst lowered the Nurtec ODT gross-to-net (GTN) pricing adjustments, assuming a GTN of 61% in 2021, which is expected to trend down and to 55% in 2025 and beyond. (See Biohaven stock chart on TipRanks)
Divan commented that Nurtec ODT seems to be more fully valued and further upside is expected on the continual rollout in the U.S. for both migraine treatment and prevention. Furthermore, he remains positive on expected EU approval next year.
“Given Nurtec’s strength, we do not anticipate significant downside from current levels even if troriluzole and verdiperstat do not deliver positive results from any of their ongoing trials, but believe there is the potential for significant upside (perhaps $20-$30 or more) should one or more of the readouts deliver a positive surprise,” Divan added.
Therefore, the analyst maintained a Buy rating but increased the price target to $134 (14% upside potential) on Nurtec’s strength and attractive risk/reward profile at the current level.
On TipRanks, Biohaven has an analyst rating consensus of Strong Buy, based on 7 Buy and 1 Hold ratings. The average Biohaven price target is $119.67, indicating a potential 1.8% upside from current levels.
According to the new TipRanks’ Risk Factors tool for the company, the Biohaven stock is at risk mainly from three factors: Finance and Corporate risk, Tech and Innovation risk, and Regulatory and Legal risk, which contribute 27%, 23%, and 21%, respectively, to the total risk for the stock. Within the Finance and Corporate risk category, BHVN has 13 risks, details of which can be found on the TipRanks website.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.
