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Biohaven Pharmaceutical Holding Company Ltd. (BHVN) Up 2.8% Since Last Earnings Report: Can It Continue?

Zacks Equity Research
·4-min read

It has been about a month since the last earnings report for Biohaven Pharmaceutical Holding Company Ltd. (BHVN). Shares have added about 2.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Biohaven Pharmaceutical Holding Company Ltd. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Biohaven’s Q1 Loss Wider Than Expected, Sales Beat

Biohaven incurred a loss of $2.97 per share for first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $2.52 but narrower than the year-ago loss of $4.21.

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Adjusted loss (excluding non-cash stock-based compensation and a few other non-cash expenses) for the first quarter was $1.62 per share compared with $3.25 in the year-ago period.

Total revenues were $319 million in the first quarter, which beat the Zacks Consensus Estimate of $187.1 million. The top line rose more than 600% year over year.

Quarter in Detail

Total revenues comprised product sales and collaboration revenues. During the quarter, Biohaven generated $123.6 million from Nurtec ODT product sales, up 182% year over year. BHVN recorded $195.3 million of collaboration revenues, derived from Pfizer as part of a strategic agreement signed last November. BHVN did not record any collaboration revenues in the year-ago period.

Research and development (R&D) expenses, including stock-based compensation, were $119.1 million in the quarter, up 11.2% year over year, induced by higher employee-related costs.

Selling, general and administrative (SG&A) expenses were $227.2 million in the quarter, up 79.3% from the year-ago period’s level. The significant increase in SG&A expense was due to higher costs to support the commercialization of Nurtec.

As of Mar 31, 2022, Biohaven had cash and restricted cash worth $602.5 million compared with $367 million as of Dec 31, 2021.

2022 Guidance

Biohaven expects product revenues from Nurtec ODT between $825 million and $900 million for 2022.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -15.31% due to these changes.

VGM Scores

At this time, Biohaven Pharmaceutical Holding Company Ltd. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Biohaven Pharmaceutical Holding Company Ltd. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Biohaven Pharmaceutical Holding Company Ltd. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Qiagen (QGEN), has gained 6.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.

Qiagen reported revenues of $628.39 million in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $0.80 for the same period compares with $0.66 a year ago.

For the current quarter, Qiagen is expected to post earnings of $0.45 per share, indicating a change of -32.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Qiagen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.


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