BofA sees Biohaven stock up on positive data for rare SCA treatment Investing.com
On Tuesday, BofA Securities modified its outlook on Biohaven Pharmaceutical Holding (NYSE:BHVN) stock, raising the price target to $62 from the previous $52 while maintaining the “Buy” rating. The review follows significant positive data for Biohaven's drug candidate, troriluzole, in the treatment of spinocerebellar ataxia (SCA), a rare neurological disease.
A BofA Securities analyst highlighted that the new data could increase the chances of Biohaven getting FDA approval for troriluzole in 2025. This hope is based on the drug showing consistent clinical benefits within one to three years compared to untreated SCA patients. The evidence suggests a significant clinical impact on disease progression, which is important given that there are currently no approved treatments for SCA.
The updated data mark a reversal of the FDA's previous refusal to include troriluzole, citing insufficient phase 2/3 data. However, recent analyzes have provided sufficient confidence for inclusion of the program in a modified climate model. Analyst projections include high US sales of approximately $1.5 billion for troriluzole, given the extremely rare name of SCA and the lack of available treatment options.
Biohaven's discussions with the FDA regarding the protocol and analytical plan for troriluzole were considered, further supporting the analyst's favorable position. The company's pipeline updates, expected in the second half of 2024, are expected to provide additional de-risking events that could drive the stock's prospects.
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