Biohaven (BHVN) Q2 Earnings Beat on Strong Nurtec Uptake
Biohaven Pharmaceutical BHVN recorded adjusted loss of $2.55 per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.78. However, the loss was wider than the year-ago loss of $1.32.
Total revenues, solely from Nurtec ODT, were $9.7 million in the second quarter. The top line beat the Zacks Consensus Estimate of $9.14 million. The company had not recorded any revenues in the year-ago quarter.
The company’s first product, Nurtec ODT (orally dissolving tablet), was approved (rimegepant) in February 2020 in the United States for treating acute migraine.
Shares of Biohaven were up almost 3.5% in pre-market trading on Aug 10, following the earnings release. The stock has gained 24.2% so far this year compared with the industry’s increase of 5.3%.
Quarter in Detail
Research and development (R&D) expenses, including stock-based compensation, were $42.4 million in the quarter, compared with $53.9 million in the year-ago quarter. The prior-year figures excludes a cost of $105.0 million related to purchase of a priority review voucher to expedite the regulatory review of Nurtec ODT formulation in the year-ago period. It also excluded accruals of certain development milestones payable to Bristol-Myers BMY amounting to $11.5 million and $5.6 million non-cash expense related to an agreement with Fox Chase.
Selling, general and administrative (SG&A) expenses, including stock-based compensation, were $124.8 million in the quarter, compared with $23.2 million in the year-ago period. The significant increase in SG&A expense was driven by higher costs to support the commercial launch of Nurtec.
As of Jun 30, 2020, Biohaven had cash and restricted cash worth $263.9 million compared with $429.2 million as of Dec 31, 2019.
Pipeline Update
Biohaven’s Nurtec ODT is the only CGRP receptor antagonist available in an orally disintegrating tablet for the acute treatment of migraine. The company is also developing the drug as a potential treatment for both episodic and chronic migraine patients. The company will file a supplemental new drug application (sNDA) seeking approval for this indication later in 2020. A phase II study is evaluating the drug in patients with trigeminal neuralgia.
Apart from Nurtec, the company is also developing two other pipeline candidates, verdiperstat and troriluzole. A phase III study is evaluating verdiperstat as a potential treatment for multiple system atrophy. Enrollment in the study was completed last month.
The company plans to initiate two phase III studies on troriluzole in 2020 to evaluate it as a potential treatment for obsessive compulsive disorder. A phase III study is currently evaluating the candidate in patients with spinocerebellar ataxia. Enrollment in the study is expected to be completed in the fourth quarter. The candidate is also being developed as a potential treatment for Alzheimer's disease in a phase II/III study.
Biohaven Pharmaceutical Holding Company Ltd. Price, Consensus and EPS Surprise
Biohaven Pharmaceutical Holding Company Ltd. price-consensus-eps-surprise-chart | Biohaven Pharmaceutical Holding Company Ltd. Quote
Zacks Rank & Stocks to Consider
Biohaven currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the biotech sector include Emergent Biosolutions Inc. EBS and Horizon Therapeutics HZNP, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions’ earnings per share estimates have moved up from $3.45 to $5.60 for 2020 in the past 30 days. The company delivered an earnings surprise of 127.41%, on average, in the last four quarters. The stock has risen 142.1% so far this year.
Horizon Therapeutics’ earnings per share estimates have increased from $1.78 to $2.16 for 2020 in the past 30 days. The company delivered an earnings surprise of 43.99%, on average, in the last four quarters. The stock has surged 110.1% so far this year.
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