Biohaven share price undervaluing pipeline potential, says RBC Capital

RBC Capital after notes released by the European Medicines Agency’s CHMP indicated that Biohaven (BHVN) had withdrawn the application for troriluzole in spinocerebellar ataxia. Investor sentiment has been more bearish lately, with most believing that SCA approval in the U.S. is critical to helping the stock recover, notes the firm, which believes this news “puts additional pressure” on that and explains the outsized stock move. However, it also believes the EMA has been a stricter regulator on rare diseases of late compared to the FDA, which could limit readthroughs While “some downside is warranted on the news” in the range of 6%-7%), the firm still thinks the current share price undervalues upside on a U.S. approval in SCA and Biohaven’s pipeline opportunities, adds the analyst, who has an Outperform rating and $61 price target on the shares.