BofA sees Biohaven stock upside on positive data for ultra-rare SCA treatment By Investing.com

On Tuesday, BofA Securities adjusted its outlook on Biohaven Pharmaceutical Holding (NYSE:BHVN) stock, raising the price target to $62 from the previous $52 while maintaining a “Buy” rating. The revision follows positive pivotal data for Biohaven’s drug candidate, troriluzole, in treating spinocerebellar ataxia (SCA), a rare neurological disorder.

The analyst from BofA Securities highlighted that the new data could potentially increase the likelihood of Biohaven securing FDA approval for troriluzole in 2025. This optimism is based on the drug showing consistent clinical benefits over one to three years compared to untreated SCA patients. The evidence suggests a clinically meaningful impact on disease progression, which is significant given that there are currently no approved treatments for SCA.

The updated data marks a turnaround from a previous FDA refusal to file troriluzole, citing insufficient phase 2/3 data. However, the recent analysis has provided enough confidence for the inclusion of the program in a risk-adjusted forecast model. The analyst’s projections include nominal peak U.S. sales of approximately $1.5 billion for troriluzole, considering SCA’s ultra-rare designation and the lack of existing treatment options.

Biohaven’s discussions with the FDA regarding the protocol and analysis plan for troriluzole have been taken into account, further supporting the analyst’s positive stance. The company’s pipeline updates, expected in the second half of 2024, are anticipated to offer additional de-risking events that could drive the stock’s potential upside.

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