Promising Potential of Biohaven’s Taldefgrobep Alfa in Obesity Treatment and Niche SMA Market Justifies Buy Rating

Analyst Douglas Tsao of H.C. Wainwright reiterated a Buy rating on Biohaven Ltd. (BHVN – Research Report), retaining the price target of $59.00.

Douglas Tsao has given his Buy rating due to a combination of factors including the promising results of Biohaven Ltd.’s drug taldefgrobep alfa in obesity treatment. Although the drug did not meet the primary endpoint in a Phase 3 trial for Spinal Muscular Atrophy (SMA), it showed significant potential in reducing body fat mass in obesity trials, with statistically meaningful results. The company plans to advance this drug into a Phase 2 obesity study, further indicating its potential utility.
Additionally, the drug demonstrated significant improvements in motor function for a subgroup of Caucasian patients in the SMA trial, suggesting a potential niche market. The improvements were statistically significant and clinically meaningful, which strengthens the thesis of potential disease-modifying effects in this population. This combination of positive signals in both obesity and specific SMA subgroups justifies the Buy rating according to Tsao’s analysis.

Tsao covers the Healthcare sector, focusing on stocks such as Disc Medicine, SAGE Therapeutics, and Rezolute. According to TipRanks, Tsao has an average return of 12.9% and a 44.69% success rate on recommended stocks.

In another report released today, RBC Capital also maintained a Buy rating on the stock with a $58.00 price target.

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Biohaven Ltd. (BHVN) Company Description:

Biohaven Ltd is a commercial-stage biopharmaceutical company with a portfolio of innovative therapies to improve the lives of patients with debilitating neurological and neuropsychiatric diseases, including rare disorders. Biohaven’s Neuroinnovation portfolio includes FDA-approved Nurtec ODT (rimegepant) for the acute and preventive treatment of migraine (EMA-approved as Vydura (rimegepant) for the acute treatment of migraine with or without aura, and prophylaxis of episodic migraine.