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Biohaven stock plunges 20% on drug updates, RBC says buy the weakness

Published 05/29/2024, 10:16 AM
Updated 05/29/2024, 10:18 AM
© Reuters.  Biohaven (BHVN) stock plunges 20% on drug updates, RBC says buy the weakness
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Biohaven (BHVN) saw its stock plunge more than 20% following the market open on Wednesday, after the company released interim data from a Phase 1 study of its autoimmune drug candidate BHV-1300.

The data showed dose-dependent and rapid reductions in IgG levels within hours of administration. There were no severe adverse events reported, with most adverse events being mild, unrelated to the study drug, and resolving spontaneously.

No significant changes in liver function tests were observed across any dose cohorts.

The study showed that BHV-1300 selectively reduced IgG levels without affecting IgA, IgM, or IgE levels. Modeling suggests that additional cohorts in the Phase 1 study could achieve over 70% IgG reduction using doses suitable for subcutaneous administration.

During its annual Investor R&D Day, Biohaven also provided updates on other drugs in its pipeline, including BHV-2100, BHV-8000, and the weight-loss candidate taldefgrobep. The company expects topline data from a Phase 3 study of its myostatin drug for treating spinal muscular atrophy in the second half of 2024.

“While we expect additional granularity at the R&D day itself, we note the additional IgG degrader data is supportive of further development in our view,” RBC Capital Markets analysts commented.

“We would be buyers on weakness as we see validation of the program as it moves to RA and potentially additional updates later this year, we continue to see significant value in other programs, especially the Kv7, and see multiple additional catalysts that can create value,” they added.

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