Biohaven (BHVN) Valuation Check After BHV-1510 Cancer Data and BHV-7000 Pipeline Shift

Biohaven (BHVN) is back in the spotlight after unveiling promising BHV-1510 cancer data at ESMO and simultaneously pivoting away from BHV-7000 in depression to refocus on immunology, obesity, and epilepsy.

See our latest analysis for Biohaven.

Those BHV-1510 results and the strategic pivot away from depression look to be reshaping sentiment, with an 11.67% 1 month share price return offering a bright spot against a steep year to date share price decline and heavy 1 year total shareholder loss. This suggests momentum may be stabilizing rather than accelerating for now.

If this kind of clinical inflection has you rethinking your watchlist, it could be a good moment to scout other potential winners across healthcare stocks and see what else stands out.

With the stock still down sharply over the past year but trading at a steep discount to analyst targets, are investors looking at an overlooked growth story, or is the market already pricing in Biohaven’s next leg higher?

Price-to-Book of -83.6x, Is it justified?

Biohaven’s headline valuation metric looks extreme at first glance, with a deeply negative price to book ratio reflecting a balance sheet under clear strain.

Price to book compares a company’s market value to its net assets, and it is a common shorthand for how much investors are paying over the accounting equity base.

In Biohaven’s case, liabilities currently exceed assets, leaving shareholders with negative equity and producing a mechanically negative price to book figure of -83.6x that is hard to interpret in the usual way.

That stands in stark contrast to both the broader US Biotechs industry, where the average price to book ratio is around 2.7x, and Biohaven’s peer group, which sits near 16.5x. This underscores just how unconventional the company’s capital structure has become.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of -83.6x (ABOUT RIGHT)

However, lingering losses, a heavily discounted share price, and ongoing clinical execution risk could still derail enthusiasm if key late stage trials disappoint.

Find out about the key risks to this Biohaven narrative.

Build Your Own Biohaven Narrative

If this view does not quite match your own, or you prefer to dig into the numbers directly, you can build a tailored take in just a few minutes. To begin, use Do it your way.

A great starting point for your Biohaven research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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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.

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