Biohaven downgraded to Neutral from Buy at BofA

BofA downgraded Biohaven (BHVN) to Neutral from Buy with a price target of $10, down from $49, after the company announced that the FDA issued a complete response letter for its troriluzole application for the treatment of spinocerebellar ataxia. The firm believes the pathway forward is “unclear,” but says it is also prudent to assume that there is no viable path to market, so it removed troriluzole from its model. The firm trimmed its view of the odds of success for Kv7 by about 20% as today’s setback “calls into question the trust-factor on dose interrogation with that agent,” the analyst tells investors.