Biohaven (BHVN) is a small cap that saw a massive trade to close last week as 10,000 May $20 calls bought at $3 to $3.30 with shares -45% YTD but managed to close the week strong out of a base and above a rising 8-MA. BHVN is also a name that has seen size buys from insiders over the past year with the CEO and multiple Directors acquiring shares in the $30.45 to $47.5 zone. BHVN short interest peaked near 10% of the float earlier this year and has moved down to 7.3%. BHVN has a $2B market cap. The positioning is unusual given the main BHVN catalyst is seen for August 2025 with Troriluzole. Following Biohaven Pharmaceutical Holding Company’s sale of the company’s CGRP migraine portfolio (Nurtec, Zavegepant and pre-clinical CGRP assets) to Pfizer in 2022, Biohaven Limited spun off and retained the company’s non-CGRP development stage pipeline.

BHVN develops therapies for immunology, neuroscience, and oncology including troriluzole, which is in Phase 3 trial for the treatment of neurological and neuropsychiatric illnesses; taldefgrobep alfa, which is in Phase 3 clinical trial for the treatment of spinal muscular atrophy and obesity; BHV-7000, a candidate in Phase 3 clinical trial for the treatment of focal and generalized epilepsy, and major depressive disorder; BHV-2100 that is in Phase 2 clinical trial for the treatment of migraines and pain disorders; BHV-1510, which is in Phase ½ trial that targets advanced or metastatic epithelial tumors; and BHV-8000, a product candidate that completed Phase 1 clinical trial for the treatment of Alzheimer’s and Parkinson’s disease, and multiple sclerosis, as well as prevention of amyloid-related imaging abnormalities.

Deutsche Bank out with a $60 target recently noting that Immunovant’s Batoclimab’s results strengthen the argument for lower is better on immunoglobulin G reduction and translation to clinical benefits, boding well for Biohaven’s IgG degrader programs. Biohaven’s program have shown in line to slightly better IgG reduction versus batoclimab. Deutsche Bank sees meaningful upside if Biohaven succeeds with any of its three mid/late-stage clinical assets (troriluzole, taldefgrobep alfa, or BHV-7000) and would be buyers heading into 2025 catalysts. MSCO models peak risk-adjusted sales for BHV-1300+1310 at $920M for 2035 and $1.5B in sales for BHV-7000. T-alfa in obesity also provides optionality with $1.7B peak sales modeled.

BHVN at this valuation with multiple shots on goal makes it intriguing as a M&A target considering the prior asset sale to Pfizer.