Goldman Sachs says this under-the-radar biotech play could more than double in value
Goldman Sachs believes that Biohaven offers investors an under-the-radar opportunity to invest in a potentially best-in-class kidney disease treatment. The bank initiated coverage on the biopharmaceutical company at a buy rating, setting a 12-month price target of $23. Shares of Biohaven have plunged 70% over the past 12 months and are down around 3% this year. The bank’s forecast implies upside of 98% from Friday’s close. BHVN 1Y mountain BHVN 1Y chart Goldman Sachs wrote that Biohaven’s extensive pipeline was led by its “potential best-in-class” degrader in IgA nephropathy, an autoimmune kidney disease. “BHVN is a clinical-stage biotechnology company with an extensive pipeline of assets, focused on late-stage programs in I & I [inflammation and immunology], epilepsy, and obesity,” wrote analyst Corinne Johnson. “Of these, we view the opportunity for BHV-1400 in IgA nephropathy (IgAN) as the central driver for the stock and key to our Buy thesis, given its potentially differentiated profile that could allow for significant market share in a > $40B (GSe) U.S. market.” While clinical data to-date for BHV-1400 is still early, it appears compelling, with the degrader potentially able to avoid immunosuppression that has been seen in other assets. This could open up the possibility of chronic use, Johnson said. She added that one catalyst for the stock comes from Biohaven’s plans to initiate a pivotal trial in early 2026. The analyst also applauded another one of Biohaven’s assets used to treat a form of epilepsy that involves partial seizures. “BHVN also have a Kv7 channel activator, opakalim, in focal onset epilepsy (FOS) that will read out pivotal data 2H26 — we believe there is a compelling use-case for opakalim in FOS, which is a large market in and of itself (~1.8M U.S. patients, ~1/3rd uncontrolled), given the potential risk/benefit profile if efficacy looks competitive vs. other anti-seizure medications, namely XENE’s Kv7 activator azetukalner,” the analyst wrote.
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