BHVN

Biohaven Pharmaceutical Holding Co Ltd

Healthcare


Presented:05/11/2018
Price:$27.19
Cap:$0.98B
Current Price:$50.71
Cap:$4.79B

Presented

Date05/11/2018
Price$27.19
Market Cap$0.98B
Ent Value$0.84B
P/E RatioN/A
Book Value$3.66
Div Yield0%
Shares O/S35.98M
Ave Daily Vol768,919
Short Int6.17%

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: Alder Biopharmaceuticals Inc (ALDR), Allergan PLC (AGN), Biohaven Pharmaceutical Holding Co Ltd (BHVN), Bristol-Myers Squibb Company (BMY), Eli Lilly and Company (LLY)

Highlights

The presenter is long shares of Biohaven (BHVN), which recently announced positive Phase 3 data for its acute migraine treatment, rimegepant [BHV-3000; a small molecule, oral calcitonin gene-related peptide (CGRP) receptor antagonist]. With the stock at ~$27, he believes the risk/reward is favorable, as the positive data should de-risk the story. The market opportunity is quite large, as roughly 17MM scripts are expected to be written for triptans – the current standard of care - in the US this year. Given a relatively good tolerability profile, rimegepant could take substantial share, which he estimates will result in $800MM - $1B of peak annual sales. Applying a 5x multiple, and using a reasonable rate to discount the value back, results in a fair market value estimate of $2B - $2.5B (versus a ~$1B market cap today).

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Idea Discussion

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