William Blair Downgrades Biohaven Pharmaceutical Holding (BHVN) to Market Perform

William Blair analyst Myles Minter downgraded Biohaven Pharmaceutical Holding (NYSE: BHVN) from Outperform to Market Perform.

The analyst comments "Our Take: We are downgrading shares of Biohaven to Market Perform given that the announcement of a CRL for troriluzole in spinocerebellar ataxia (SCA) halts not only a near-term source of revenue but also the ability of the company to access $150 million in capital through its note purchase agreement with Oberland Capital. While the company’s announced cost optimization should extend the current cash runway, even with a 60% reduction in annual R&D spend we believe Biohaven will need additional capital to continue to fund its pipeline or seek strategic alternatives for its deprioritized pipeline assets. We are aligned with Biohaven’s disappointment on the CRL given troriluzole showed greater than 50% disease slowing over 3 years compared to natural history and did so without liver toxicity, which is currently a material risk with riluzole readily prescribed off-label for the treatment of SCA. However, given the FDA has now been restrictive to both uniQure’s (QURE $27.21; Market Perform) and Biohaven’s comparisons to natural history as a regulatory path forward in rare neurological disorders, we are moving to a Market Perform rating as we await regulatory clarity."

For an analyst ratings summary and ratings history on Biohaven Pharmaceutical Holding click here. For more ratings news on Biohaven Pharmaceutical Holding click here.

Shares of Biohaven Pharmaceutical Holding closed at $13.95 yesterday.

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