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    Biohaven (BHVN) Is Down 6.1% After Ending BHV-7000 Depression Trial To Refocus On Epilepsy And Obesity

    Simply Wall St·01/05/2026 20:13:24
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    • Biohaven reported that its Phase 2 proof-of-concept trial of BHV-7000 in major depressive disorder failed to meet the primary MADRS endpoint over six weeks versus placebo, although the drug showed a clean safety profile and only mild, mostly transient adverse events.
    • The company highlighted encouraging trends in more severely depressed subgroups but, citing portfolio priorities, decided against further psychiatric trials for BHV-7000, redirecting attention to immunology, obesity and epilepsy programs ahead of detailed clinical updates at the 2026 J.P. Morgan Healthcare Conference.
    • Next, we assess how discontinuing BHV-7000’s psychiatric development while emphasizing epilepsy and obesity programs affects Biohaven’s broader investment narrative.

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    What Is Biohaven's Investment Narrative?

    To own Biohaven, you really have to believe the pipeline can justify heavy current losses and ongoing dilution, despite zero revenue and no clear path to profitability in the next few years. The BHV-7000 depression miss underlines that reality: it takes one potential upside swing off the table in psychiatry, but the clean safety data helps preserve its value in epilepsy, where a trial is still running. In the near term, the bigger catalysts now sit squarely in immunology and obesity, along with early degrader and oncology readouts the company plans to spotlight at the 2026 J.P. Morgan conference. At the same time, the recent equity raise, volatile share price and negative equity position keep financing and balance sheet risk front and center for shareholders.

    However, one risk in particular could matter more than many investors currently appreciate. Our expertly prepared valuation report on Biohaven implies its share price may be too high.

    Exploring Other Perspectives

    BHVN 1-Year Stock Price Chart
    BHVN 1-Year Stock Price Chart
    Five fair value views from the Simply Wall St Community span US$1.98 to US$19.80, underscoring how far apart individual expectations sit. Against that backdrop, Biohaven’s heavy cash burn, dilution and reliance on upcoming data readouts become central questions for anyone weighing how this story might evolve from here.

    Explore 5 other fair value estimates on Biohaven - why the stock might be worth less than half the current price!

    Build Your Own Biohaven Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.