Biohaven Crushes Forecasts; What's Next For Its Blockbuster Hopeful?

Biohaven Pharmaceutical's first-quarter pre-announcement for sales of migraine treatment Nurtec ODT crushed Wall Street's expectations Wednesday, leading BHVN stock to surge.

During the quarter, Nurtec ODT — orally disintegrating tablets — generated $43.8 million in sales, Biohaven said. That handily beat Bloomberg's estimate for $27.2 million, Mizuho Securities analyst Difei Yang said in a report to clients.

Nurtec ODT launched recently as an acute migraine treatment. But analysts expect the Food and Drug Administration to approve it as a migraine prevention drug later this quarter. That should help differentiate Nurtec ODT from the multitude of migraine products on the market.

"In addition, Nurtec ODT uptake should benefit from the country 'reopening,' given the product launched during the heart of the Covid pandemic," Yang said. "We continue to forecast peak Nurtec ODT sales exceeding $2.7 billion."

Yang kept her buy rating and 103 price target on BHVN stock.

BHVN Stock Surges On Pre-Announcement

In morning trading on today's stock market, BHVN stock soared 12.8%, near 74.20.

From its launch in March 2020 to now, Nurtec ODT has generated $107.4 million in sales. There have been more than 500,000 prescriptions filled over the same time period.

The first quarter is typically challenging due to insurance dynamics, Biohaven Chief Executive Vlad Coric said in a written statement. Further, the winter jump in Covid-19 cases hit prescription volume, he said. Still, Nurtec ODT tacked on sequential growth in prescription volume and net revenue.

"The impressive market growth of Nurtec ODT reflects the significant unmet need that exists for patients suffering from the debilitating effects of acute migraine, our strong commercial and managed markets team, and the differentiated product label compared to competitors," Coric said.

Some investors in BHVN stock have been concerned about the drug's growth opportunity, Wedbush analyst Laura Chico said in a report to clients. But Biohaven is executing well in the crowded migraine treatment market, she said.

"While the majority of our Biohaven valuation derives from acute treatment usage, offering physicians and patients a single option for acute and prevention treatment should facilitate prescribing," she said.

Chico has an outperform rating and 97 price target on BHVN stock.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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