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Biohaven Pharmaceutical Holding Company Ltd. (BHVN) Up 35.3% Since Last Earnings Report: Can It Continue?

·3 min read

It has been about a month since the last earnings report for Biohaven Pharmaceutical Holding Company Ltd. (BHVN). Shares have added about 35.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Biohaven Pharmaceutical Holding Company Ltd. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Biohaven’s Q1 Earnings Miss Estimates, Revenues In Line

Biohaven incurred loss of $4.27 per share in first-quarter 2021, wider than the Zacks Consensus Estimate of a loss of $2.92 as well as the year-ago loss of $3.07. Adjusted loss for the first quarter was $3.04 per share compared with $2.39 in the year-ago period. The dismal bottom-line performance was due to higher operating expense during the quarter.

Total revenues, solely from Nurtec ODT, were $43.8 million in the first quarter, up almost 24.8% sequentially. Revenues were in line with the Zacks Consensus Estimate. The company recorded revenues of $1.2 million in the year-ago quarter.

Quarter in Detail

Research and development (R&D) expenses, including stock-based compensation, were $107.1 million in the quarter, up 91% year over year driven by higher clinical activities relate to a key pipeline candidate, zavegepant and one-time license and milestone payments.

Selling, general and administrative (SG&A) expenses were $159.5 million in the quarter, up 66.8% compared from 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 Mar 31, 2021, Biohaven had cash and restricted cash worth $575.5 million compared with $357.4 million as of Dec 31, 2020. The increase was driven by proceeds from sales of common shares and receipt of a milestone payment.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -19.43% due to these changes.

VGM Scores

Currently, Biohaven Pharmaceutical Holding Company Ltd. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Biohaven Pharmaceutical Holding Company Ltd. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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