Biohaven Pharmaceutical Holding Company Ltd. (BHVN) previewed some promising test results from its new migraine drug, but shares have fallen almost 5% since Monday as the company has been affected by the recent decline in the biotech sector overall.
The iShares Nasdaq Biotechnology ETF (IBB - Get Report) has dropped 5.9% since June 20, and Biohaven's performance has been in line with that trend. But Brandon Folkes, an analyst for Cantor Fitzgerald, remains bullish on the company.
"There's tremendous opportunity from a fundamental perspective," Folkes said. "There hasn't been any incremental data that should drive weakness."
Folkes said investors might just be trading based on the sector rather than looking at Biohaven's specifics.
Phase III trials showed that rimegepant outperformed a placebo in reducing pain for up to two days. The drug also produced gains in reducing functional disability in afflicted patients for up to two days as well, according to a company press release.
Patients who were treated with rimegepant also showed significant relief against the placebo for migraine symptoms including light sensitivity, sound sensitivity and nausea for over eight hours.
"Rimegepant has the potential to help millions of people with migraine get back to work and back to their families," Dr. Richard Lipton, director of the Montefiore Headache Center, said in a press release.
The company will present extended data from the trial results Saturday at the American Headache Society Annual Scientific Meeting 2018. The trial's initial results came out in March.
Six analysts have a "buy" recommendation on the stock while one maintains a "hold" rating. Biohaven tumbled $1.92 -- or 4.81% -- to its current price after Wednesday trading, but Folkes is optimistic about the company's pipeline.
"We will continue to get data readouts from Biohaven, that if positive, should drive the stock higher," Folkes said.