BofA Securities Downgrades Biohaven Pharmaceutical Holding (BHVN) to Neutral

BofA Securities analyst Jason Gerberry downgraded Biohaven Pharmaceutical Holding (NYSE: BHVN) from Buy to Neutral with a price target of $10.00 (from $14.00).

The analyst comments "Last night, Biohaven (BHVN) announced that the FDA issued a CRL (complete response letter) for its troriluzole (trori) application for the treatment of SCA. Based on the detailed regulatory interactions outlined in the press release, we believe the pathway forward is unclear but we are also prudent to assume that there is no viable path to market, thus we remove trori from our model. Moreover, we think BHVN’s announced restructuring plan would result in concentrating resources on three key assets; 1) degrader; 2) kv7; 3) antimyostatin. Though the degrader and kv7 programs have generated some initial de-risking data, we believe the Kv7 program (risk-adjusted) is the central value driver going forward. For Kv7, we trim our POS (by ~20%) as today’s setback calls into question the trust-factor on dose interrogation with that agent (skipped conventional Ph2 dose finding). Our model changes, detailed in Exhibit 1, result in a PO decrease to $10 (from $49). Our Neutral rating (was Buy) reflects our view that shares might remain range bound until there is greater visibility on a financeable catalyst."

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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