Discover the latest update on Biohaven Pharmaceutical Holding (NYSE:BHVN) stock as BofA Securities raises the price target to $62 from the previous $52 with a "Buy" rating. The adjustment comes after positive pivotal data on Biohaven's drug candidate, troriluzole, in treating spinocerebellar ataxia (SCA), a rare neurological disorder.
According to the analyst at BofA Securities, the new data could enhance the chances of FDA approval for troriluzole in 2025. The drug has demonstrated consistent clinical benefits over one to three years compared to untreated SCA patients, indicating a significant impact on disease progression where no approved treatments currently exist.
This turnaround follows a previous FDA refusal based on insufficient phase 2/3 data, but the recent analysis has instilled confidence in including the program in a risk-adjusted forecast model. Projections suggest nominal peak U.S. sales of around $1.5 billion for troriluzole, considering SCA's rare status and lack of treatment options.
Positive discussions with the FDA regarding troriluzole's protocol and analysis plan further support the analyst's optimistic view. Stay tuned for Biohaven's pipeline updates expected in the second half of 2024, which could drive the stock's potential upside with additional de-risking events.
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What does this mean for you?
If you're considering investments, Biohaven Pharmaceutical Holding (NYSE:BHVN) stock presents a compelling opportunity following BofA Securities' price target adjustment and positive data on troriluzole. The potential FDA approval in 2025 could lead to significant growth in the company's value, with projected sales of $1.5 billion for the drug. Additionally, Biohaven's upcoming pipeline updates offer further potential for stock appreciation.