Biohaven Pharma’s shares held a Buy rating from TD Cowen on Wednesday after the company finalized a global licensing agreement with SK Biopharmaceuticals for its opakalim epilepsy treatment, a Kv7 ion channel platform asset.
The deal, valued at up to $795 million, includes a $400 million upfront payment to Biohaven, with $350 million due at closing and the remainder structured as development and regulatory milestones. SK Biopharmaceuticals assumes all development costs and will pay royalties on future global net sales. Analyst Tyler Van Buren at TD Cowen noted the terms reduce near-term downside risk ahead of pivotal RISE3 trial results expected in the second half of 2026.
The agreement extends Biohaven’s cash runway closer to two years, according to Van Buren, who highlighted the financial flexibility as a key benefit. The analyst maintained a Buy rating and a $30 price target, implying 88% upside from Biohaven’s $15.94 closing price on Tuesday.
Separate analyst actions followed the deal. RBC Capital raised its price target to $23 from $22 while maintaining an Outperform rating. Raymond James, which had previously set a $50 target, adjusted its outlook to $30.
Biohaven’s opakalim is being evaluated in the RISE3 trial, a pivotal Phase 2/3 study targeting refractory focal epilepsy. The company completed enrollment in the trial earlier this year. Biohaven’s current ratio stands at 4.73, indicating liquid assets significantly exceed short-term obligations, according to InvestingPro data.
Biohaven’s stock has gained 29% over the past six months, reflecting investor optimism tied to the opakalim program and the strategic partnership with SK Biopharmaceuticals.
