By Mitchell Young
NEW HAVEN: Connecticut’s newest bio-tech star just ran full force into a brick wall.
Biohaven, [NYSE: BHVN] went public in May at $17 raising $168 million in its IPO. Three months later the stock hit $37, and a $1 billion dollar plus valuation in part on expectations of positive results from an Phase 3clinical trial and its strategy of licensing existing drugs in need of further clinical trials and development
Biohaven unique business plan has it licensing rights to drugs from a variety of sources, including Yale, Rutgers, Bristol Myers, AstraZeneca, Mass General Hosptial, creating hopefully a quick route to a diverse pipeline in an industry where a single drug can take a decade or more to develop.
Unfortunately the first study our of the gate, a Phase II/III study of trigriluzole, which was given Fast Track status from the FDA showed that that it didn’t work as well as the placebo in treating spinocerebellar ataxia, a rare genetically generated disease that effects the brains ability to properly control body movements.
The company’s stock initially dropped 28% on the news, but recovered somewhat and still remains at double it’s IPO price.
In September the company announced that it was going to test the drug for Alzheiemers with thes Alzheimer's Disease Cooperative Study [ADCS, an Alzheimer's disease (AD) clinical trials research consortium that receives major support from the U.S. National Institute on Aging (NIA), a part of the US National Institutes of Health.
Biohaven which recently announced in late September it was establishing its headquarters at the former Liberty Bank building on Church Street. Along with the negative results the company said that it has more than $200 million in cash in its coffers, to fund its immediate operations and trials.
|Biohaven CEO:" Disapointed in the results."|
Biohaven CEO Vlad Coric commented on the results saying, “we are obviously disappointed that today’s topline clinical results do not support continued development of trigriluzole as a symptomatic agent for patients with SCA, a devastating neurologic disorder for which novel treatments are urgently needed. This was the largest SCA clinical trial performed to date and important knowledge has been generated — we plan to share our data with the ataxia clinical leaders and the National Ataxia Foundation to help refine clinical trials in this therapeutic area.”