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April 16, 2019 Bioscience Notebook

Report: Biohaven Pharmaceutical exploring sale

PHOTO | Contributed
By Natalie Missakian

New Haven-based Biohaven Pharmaceutical Holding Co. Ltd., which is close to FDA approval on new treatments for migraine and ALS, is in discussions about a possible sale of the company, according to Bloomberg.

Citing anonymous sources familiar with the matter, Bloomberg reported on Friday that Biohaven is exploring options including a possible sale after attracting interest from potential bidders, which it did not name.

The report said Biohaven is working with a financial adviser and is in the early stages of considering a sale or partnership, but that the talks may not lead to a deal.

A Biohaven spokesman declined to confirm the report on Monday, telling New Haven BIZ that “[we] do not comment on rumors and speculation.”

Biohaven’s stock, which trades on the NYSE under the symbol BHVN, rose 18 percent on the news, closing at $59.40 on Friday. It opened at $60.52 in Tuesday morning trading.

Wall Street analyst Alan Carr, who covers Biohaven for Needham & Co., said the biotech has been looking for a pharmaceutical company to commercialize its new migraine drug, so it would be no surprise if the company is in discussions about a potential sale.

“It makes sense that someone could be interested in the asset, because they have presented data so far that shows it could be a very good migraine drug,” added Carr, who lives in North Branford. “We’ll just have to wait and see if the reports are true.”

Carr declined to speculate on what companies might be interested in acquiring Biohaven.

Spun out of Yale six years ago, Biohaven went public in 2017 and has been rapidly moving its drug candidates through the regulatory approval process.

The company, with 63 employees based at 234 Church St., is nearing the finish line on two of its drugs — one to treat migraines and another for Amyotrophic Lateral Sclerosis (ALS), commonly known as Lou Gehrig's Disease.

Approval for Nurtec, a dissolving, under-the-tongue version of an older ALS drug, is expected later this year. It aims to improve treatment for ALS patients with swallowing difficulties.

Biohaven is also preparing to apply for FDA approval by the end of June for its migraine drug, rimegepant, following successful Phase 3 clinical trials.

The drug is part of a new class of migraine treatments known as CGRP receptor antagonists, which are billed as an alternative to widely used migraine drugs known as triptans.

According to Bloomberg, rimegepant acts on the same target as recently released migraine drugs by drugmakers like Amgen Inc., Eli Lilly & Co. and Teva Pharmaceutical Industries Ltd.

Biohaven is also working on treatments for Alzheimer’s disease, obsessive-compulsive disease, generalized anxiety disorder and others.

The Bloomberg report said Biohaven’s Alzheimer’s research may also be attractive to buyers, since there are few companies remaining in that space.

Dawn Hocevar, president and CEO of Connecticut bioscience booster organization BioCT, said if the report is true, it serves as an affirmation of the company and the strength of New Haven’s bioscience industry.

“Most pharmaceutical companies are out there looking for the next best thing,” she said. “It’s not unusual for them to be seeking something that they see as having great potential.”

Contact Natalie Missakian at news@newhavenbiz.com

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