Biohaven downgraded to Market Perform from Outperform at William Blair

William Blair analyst Myles Minter downgraded Biohaven (BHVN) to Market Perform from Outperform. The announcement of a CRL for troriluzole in spinocerebellar ataxia halts not only a near-term source of revenue but also the ability of the company to access $150M in capital through its note purchase agreement with Oberland Capital, the analyst tells investors. Even with a 60% reduction in annual R&D spending, the firm believes Biohaven will need additional capital to continue to fund its pipeline or seek strategic alternatives for its deprioritized pipeline assets, notes the analyst, who is moving to the sidelines to await regulatory clarity given that the FDA has now been restrictive to both uniQure’s (QURE) and Biohaven’s comparisons to natural history as a regulatory path forward in rare neurological disorders.