What happened
Shares of the clinical-stage biopharma Biohaven(NYSE: BHVN) rocketed higher by 33.5% over the first four days of trading this week, according to data provided by S&P Global Market Intelligence. The big gain was sparked by the company's research and development day presentation held on Wednesday.
Highlights from Biohaven's presentation include the unexpected Food and Drug Administration (FDA) regulatory filing for the experimental spinocerebellar ataxia type 3 drug troriluzole, status updates on its closely watched epilepsy program, and a clinical strategy overview for its newly acquired neuroinflammatory asset BHV-8000.
So what
Biohaven has kept a relatively low profile since selling its migraine headache assets to Pfizer, and subsequently spinning off its remaining clinical pipeline as a stand-alone company in 2022. This R&D presentation, however, shows that the company has been extremely busy in the interim advancing multiple potential value drivers in the clinic.
Most importantly, Biohaven might be on the cusp of returning to the land of revenue-generating commercial-stage biotechs, which is great news for shareholders. The key reason is that the drugmaker now has a chance at supporting its varied clinical pipeline through a recurring form of revenue -- instead of leaning on public offerings and debt instruments. That being said, it is important to note that troriluzole did miss the mark in late-stage testing. Hence, an approval is far from a sure thing.
Now what
Is Biohaven stock a buy? I think so. The company has proven that it can successfully navigate the onerous clinical trials process to land an FDA approval. That fact alone makes this small-cap pharma stock an intriguing speculative buy.
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George Budwell has positions in Pfizer. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
