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Why Biohaven (BHVN) Stock Is Rallying Today

Biohaven (BHVN) is jumping 10% after the FDA agreed to review the company’s potential treatment for a rare disease.

The FDA’s Decision on BHVN’s Drug Candidate

The FDA agreed to review BHVN’s application for the approval of its drug candidate, troriluzole, Biohaven announced today. Additionally, the agency decided to grant the drug Priority Review status. According to BHVN, Priority Review is granted to “drugs that would offer a significant improvement over other available treatments for a given disorder or would provide a treatment option where none exists.”

A laboratory technician in a safety suit analyzing and conducting a series of experiments.

Information on Troriluzole

Troriluzole is a potential treatment for a rare, genetic, neurodegenerative, life-threatening disease called spinocerebellar ataxia (SCA). There is currently no FDA-approved treatment for SCA, which results in “relentless and irreversible functional decline including impairments in coordination and balance leading to falls, loss of ambulation, and difficulties with vision, speech and swallowing,” according to BHVN.

In a three-year study, the rate of decline of patients taking troriluzole was 50%-70% slower than those in a control group. Moreover, the drug candidate met the study’s primary endpoint while demonstrating “statistically significant superiority across 9 consecutive, prespecified primary and secondary endpoints,” BHVN reported.

The company expects the FDA to make a decision on its application in the third quarter of this year.

While we acknowledge the potential of BHVN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BHVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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