Biohaven is following the same strategy with its remaining drug pipeline as it did prior to Pfizer's massive buyout of the bulk of its assets — and BHVN stock has soared by triple digits since.
In October, Pfizer spent $11.6 billion to buy Biohaven's migraine treatment assets, including an already approved drug called Nurtec ODT. Chief Executive Vlad Coric now says the Biohaven operations that remain will focus on treatments for epilepsy, spinal muscular atrophy and a protein degradation program with multiple potential uses.
Coric says Biohaven is embracing a "fast-follower" approach to drug development. For example, it followed that strategy with Nurtec, which blocks the same migraine-associated peptide as AbbVie's Ubrelvy.
"When we picked up Nurtec, Ubrelvy and AbbVie had an 18-month lead," he told Investor's Business Daily. "We launched two months after they did. We can move quicker when a mechanism has been de-risked."
BHVN Stock: How 'Fast-Follower' Works
Biohaven and the new BHVN stock went public in early October after Pfizer finished buying its predecessor, known as Biohaven Pharmaceuticals. With the acquisition, Pfizer got Nurtec, two later-stage experimental migraine treatments and earlier-stage drugs targeting the same migraine-tied peptide.
That left the new Biohaven — now without the "Pharmaceuticals" in its name — to relaunch with a diverse pipeline that uses the same fast-follower method.
Coric points to Biohaven's efforts in epilepsy, which mimic this approach. Xenon Pharmaceuticals has already tested a treatment that modulates a potassium channel called Kv7 in several seizure disorders. Biohaven is following with a drug that targets the same channel, but doesn't interact with a neurotransmitter known as GABA. Biohaven hopes to eliminate the sleepiness often associated with epilepsy drugs.
"Our Phase 1 data that we just put out at J.P. Morgan (Healthcare Conference) demonstrates that, for the first time, you can unwind GABA from Kv7 and we have a Phase 1 single- and multiple-dose set of patients treated and did not have that baggage" of somnolence, sedation and fatigue, he said.
BHVN stock climbed more than 5% following its presentation at the conference. Piper Sandler analyst Christopher Raymond says Biohaven could have a potentially best-in-class asset with its epilepsy drug.
Not hitting the GABA neurotransmitter "could be a major differentiating feature of (Biohaven's drug), providing it with a wider therapeutic index and the ability to achieve higher (effectiveness) with higher doses," he said in a note to clients. He has an overweight rating on BHVN stock.
A Model From Scholar Rock, Roche
Now, Biohaven is planning to simply replicate Xenon's study design to confirm the doses it wants to send into later-stage testing. If that pans out, Coric says Biohaven could start a pivotal-stage study in the second half of this year.
"The challenge as a fast follower is you have to be smarter and quicker to demonstrate your compound is going to commercially differentiate," he said.
Biohaven is also in late-stage testing of a treatment for spinal muscular atrophy. If successful, it would put the company in a favorable position. Biohaven's drug would work on top of other treatments. Biogen and Ionis Pharmaceuticals sell Spinraza for SMA. Novartis makes a gene therapy called Zolgensma.
In this case, Scholar Rock Holding has proven the mechanism for beefing up muscle mass and function by targeting myostatin, a receptor in muscle development. Roche also has a myostatin-focused drug in development.
Coric says Biohaven's approach blocks myostatin at a different spot. The company is currently enrolling patients in a final-phase study. Conservatively, he expects Biohaven to have study results next year — an event investors in BHVN stock will undoubtedly be watching closely.
Argenx's Roadmap In Protein Degradation
Biohaven is also a fast follower of Argenx, which has an approved drug called Vyvgart that lowers the level of immunoglobulin G autoantibodies in the blood. Also known as IgG, these autoantibodies destroy platelets and reduce platelet production. Argenx is testing the mechanism, which degrades IgG, in a series of other disorders.
Biohaven is using a platform from Yale University that takes a slightly different approach with the same target. It leads to a "safer and quicker onset" in the reduction of IgG, Coric says. The same degradation program — which hijacks the liver to destroy problematic proteins — is being tested in cancer as well.
There are myriad other catalysts for BHVN stock investors in 2023 as well, Piper Sandler's Raymond said.
He noted Biohaven is planning to start a study in bipolar disorder in the second half of the year. It will also likely ask for permission to begin testing in people another Kv7 potassium channel-focused drug. Biohaven is also expected to finish enrolling two obsessive compulsive disorder studies.
Biohaven also is working on a treatment for spinocerebellar ataxias. These are rare disorders that cause poor muscle control and affect balance and speech. Raymond notes Biohaven is likely to begin talking with regulators about a filing for approval in the first half of 2023.
BHVN Stock Has A Perfect Rating
Alongside a triple-digit gain since October, BHVN stock has a best-possible Relative Strength Rating of 99. This means Biohaven stock ranks in the leading 1% of all stocks in terms of 12-month performance, according to IBD Digital.
Shares are also above their 50-day moving average, MarketSmith.com shows.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
