RBC downgrades Biohaven to Sector Perform on regulatory risk

RBC Capital downgraded Biohaven (BHVN) to Sector Perform from Outperform with a price target of $21, down from $54. While checks suggest some key opinion leader enthusiasm around troriluzole, RBC “cannot get comfortable with the regulatory risk, especially with recent changes at the FDA and the major amendment,” the analyst tells investors in a research note. The firm still thinks Biohaven “shows investors a number of exciting high risk/high reward opportunities,” but it is confident enough in any single one to be able to recommend shares. The “risk off environment” will persist, and Biohaven’s near term risks outweigh rewards, contends RBC.