Biohaven (BHVN, Financial) recently withdrew its application for troriluzole for the treatment of spinocerebellar ataxia (SCA) from the European Medicines Agency's (EMA) consideration. This decision follows the release of notes from the EMA’s Committee for Medicinal Products for Human Use (CHMP), indicating ongoing challenges in the approval process.
Market analysts at RBC Capital suggest that investor sentiment has turned increasingly negative, as many stakeholders view approval in the United States as a key factor for the stock's recovery. The withdrawal is seen as intensifying the pressure for a successful U.S. outcome. Despite the setback, RBC notes that the EMA has been a particularly stringent regulatory body concerning rare diseases, potentially offering a different pathway for U.S. approval.
While the immediate impact on Biohaven's stock might involve a decline of about 6% to 7%, the firm maintains an optimistic outlook, arguing that the current share price does not fully reflect the potential upside from a possible U.S. approval and Biohaven’s broader pipeline projects. RBC Capital continues to rate the stock as Outperform, with a price target set at $61 per share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Biohaven Ltd (BHVN, Financial) is $60.46 with a high estimate of $76.00 and a low estimate of $39.00. The average target implies an upside of 197.99% from the current price of $20.29. More detailed estimate data can be found on the Biohaven Ltd (BHVN) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Biohaven Ltd's (BHVN, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
