JP Morgan has started Biohaven ( NYSE: BHVN ) off with an overweight rating saying that lead candidate BHV-7000 holds promise in several neurological indications and its pipeline is encouraging.
The firm has a $23 price target (~70% upside based on Monday's close).
Shares are up 8% in Wednesday afternoon trading.
Analyst Tessa Romero said she is particularly excited about BHV-7000 for focal seizures as discussions with key opinion leaders indicate there is a significant unmet medical need for the condition.
Although there is no clinical data yet for BHV-7000, "we believe that proof-of-concept has already been established for the asset in focal epilepsy given its comparable mechanism of action to ezogabine as Kv7 activators."
Looking ahead to the next six to 12 months, Romero said she is anticipating a phase 1 study update evaluating BHV-7000 in healthy volunteers in the first half of the year and the beginning of a phase 2/3 trial for BHV-7000 in focal onset seizures in the second half.
Biohaven ( BHVN ) in its current form began trading in September 2022 as spinoff of its prior self, a condition for Pfizer ( PFE ) to buyout the "old" Biohaven.
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Biohaven initiated at overweight at JP Morgan on neurological targets