Our Stock of the Week is Biohaven Pharmaceutical Holding Company (BHVN). BHVN is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing life-changing therapies to treat a broad range of rare and common diseases.
The company has a tremendous pipeline. It has five proprietary platforms that are fueling multiple clinical programs in large indications in epilepsy, bipolar disorder, depression, obsessive-compulsive disorder, migraine, pain, obesity, Alzheimer's disease, Parkinson's disease, multiple sclerosis, rheumatoid arthritis, and cancer. BHVN also has programs in rare autoimmune and inflammatory diseases, including myasthenia gravis, cardiomyopathy, spinal muscular atrophy, and IgA nephropathy.
A copy of a slide presentation with further details is available on the Events and Presentations section of the Biohaven website.
On February 16, RBC Capital Markets initiated coverage of BHVN with an outperform rating and a $62 target. The analysts commented, "We like the way BHVN identifies promising technologies and targets and then leverages its management expertise to optimize the development path based on competitor data to become a fast-follower in high-value therapeutic areas. In particular, we see this playbook leading to success in epilepsy, where we believe the market can support two winning Kv7 modulators and see BHV-7000 as having $1B+ potential. While we see some of the nearer-term catalysts as high reward/ risk, we believe there is significant value to be unlocked over the long-term as data from the Kv7, degrader, and other pipeline programs matures."
The company should have several program updates in the first quarter to serve as potential catalysts.
Technically, the stock has been in a solid uptrend since October 2023 and is now testing overhead resistance at the psychologically important $50 level. A break of the level on good volume should attract momentum investors.
As always, we will not chase strength on Monday morning but will be looking to trade the stock aggressively as price action develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in BHVN. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
