BHVN

Biohaven Pharmaceutical Holding Co Ltd

Healthcare


Presented:04/04/2019
Price:$49.00
Cap:$2.17B
Current Price:$50.71
Cap:$4.79B

Presented

Date04/04/2019
Price$49.00
Market Cap$2.17B
Ent Value$1.37B
P/E RatioN/A
Book Value$3.42
Div Yield0%
Shares O/S44.26M
Ave Daily Vol448,717
Short Int11.11%

Current

Price$50.71
Market Cap$4.79B
Biohaven Pharmaceutical Holding Co. Ltd. is a clinical-stage biopharmaceutical company, which engages in the research and development of late-stage product candidates targeting neurological diseases, including rare disorders. It focuses on a pipeline of product candidates that represent mechanistic platforms, calcitonin gene-related peptide receptor antagonists, and glutamate modulators. The company was founded in September 2013 and is headquartered in New Haven, CT.

Publicly traded companies mentioned herein: Allergan (AGN), Amgen Inc (AMGN), Biogen Inc (BIIB), Biohaven Pharmaceutical Holding Co Ltd (BHVN), Eli Lilly & Co (LLY), Gilead Sciences Inc (GILD), GlaxoSmithKline PLC (GSK LN; GSK),

Highlights

The presenter is long shares of Biohaven Pharma (BHVN) and views the story as largely de-risked at this point. The data for rimegepant (BHV-3000/3500), BHVN’s oral CGRP antagonist for the treatment of acute migraines, has been good thus far, and Royalty Pharma bought into the story via a $150MM headline investment (June ‘18). There appears to be optionality around a takeout over the next 6 months; however, the recent acquisition of GW Pharma’s priority review voucher (PRV) for $105MM (March 2019) will cut four months off the FDA’s review time, potentially accelerating the need for BHVN to bring the drug to the market itself. Balancing the scenarios is somewhat difficult, but in any event, the current value of the company seems to only reflect the acute migraine opportunity. This leaves significant room for upside, in the presenter’s opinion, for shareholders regardless of whether a buyer emerges or Biohaven must bring rimegepant to market (and go after a preventive indication) itself.

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Idea Discussion

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