Raymond James reduced its price target for Biohaven Pharma to $30 from $50 while maintaining a Strong Buy rating, citing the monetization of the company’s opakalim asset. The move follows a global licensing agreement with SK Biopharmaceuticals that includes a $400 million upfront payment, with total potential payments reaching $795 million across milestones.
Biohaven’s shares were trading at $14.96 at the time of the report, up from a prior close of $14.38 but below an after-hours peak of $15.34. The licensing deal removes the full economic benefit of opakalim from Raymond James’s valuation model, prompting the downgrade. RBC Capital, however, raised its price target to $23 from $22 while keeping an Outperform rating.
The agreement covers Biohaven’s Kv7 ion channel platform and opakalim, an investigational epilepsy treatment. The RISE3 pivotal Phase 2/3 trial for refractory focal epilepsy has completed enrollment, with data expected in the second half of 2026. Biohaven also initiated a Phase 3 study for BHV-1300, an IgG degrader targeting Graves’ disease, with the first patient dosed.
The monetization extends Biohaven’s cash runway through 2028, addressing concerns over liquidity after prior estimates suggested funding would last only 12 months. The company’s current ratio stands at 4.73, indicating sufficient liquid assets to cover short-term obligations. Biohaven’s CEO Vlad Coric and Executive Vice President David Pirman highlighted the strategic shift, with Pirman promoted to lead discovery efforts.
Analysts noted that while the licensing deal strengthens Biohaven’s financial position, it also removes a key revenue driver from near-term projections. The BHV-1300 pivotal data, expected in late 2027, remains a critical milestone for the company’s pipeline.
