Leerink starts Biohaven Pharma at OP; PT $50

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Leerink Partners launched coverage of Biohaven Pharmaceutical Holding (NYSE:BHVN) with an “outperform” rating and $50 price target. The stock closed at $36.90 on Nov. 13.

Biohaven is focused on a range of neurological diseases and rare disorders, with a four-fold investment thesis, writes analyst Marc Goodman.

“We think that the migraine space will be a significant market, that the branded acute segment is underappreciated, and that Biohaven will monetize the strong rimegepant clinical profile most likely through a commercial partner, or potentially with a go it alone strategy,” he said.

Mr. Goodman said the company’s platforms and pipeline get little attention, although the company has several candidates that could be a source of upside.

Biohaven’s most recent in-licensed product, BHV-3241 for multiple system atrophy, has a sales opportunity of about $250-million in 2030, but “given how recently the deal was completed, the product is not in the conversation yet,” he added.

Management has a strong scientific background in neuroscience, and “we expect [management] to use business development to continue building out the pipeline,” he said.

Mr. Goodman said catalysts in the fourth quarter of 2018 include long-term safety data for rimegepant in acute migraine;top-line data from a rimegepant/Zydis ODT study;a505(b)(2) NDA filing for Nurtec (BHV-0223) in ALS; and completion of aPhase 1 study for BHV-5000 in Rett syndrome.

Stephen Kilmer