Please ensure Javascript is enabled for purposes of website accessibility

Biohaven Stock Slides More Than 8% on Drug Trial Failure

By Eric Volkman - Updated Feb 10, 2020 at 4:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's candidate troriluzole failed to meet its primary endpoint in a trial as a treatment for generalized anxiety disorder.

Biohaven's (BHVN -0.28%) drug candidate troriluzole failed to meet its primary endpoint in a phase 4 clinical trial, the company said in a press release Monday. Troriluzole was being evaluated for the treatment of generalized anxiety disorder (GAD), but the results showed that it was no more effective than a placebo.

As a result, Biohaven will discontinue the development of the drug as a monotherapy for GAD. It's not giving up hope entirely on Troriluzole though: It's currently in trials as a potential treatment for obsessive-compulsive disorder (OCD), Alzheimer's disease, and spinocerebellar ataxia (SCA), a degenerative disease of the brain and sometimes spinal cord that affects movement.

Drugs being thrown in the trash.

Image source: Getty Images

Troriluzole is a relatively versatile drug candidate since it modulates glutamate, the most abundant neurotransmitter. Neurotransmitters are chemicals that transmit signals throughout the body's nervous system.

"Since it is often difficult to predict clinical outcomes from preclinical and early clinical proof of concept studies, our strategy has been to test troriluzole in four distinct disorders where glutamate has been implicated in the underlying pathophysiology of the illnesses," Biohaven said in the press release.

The company has particularly high hopes for the Alzheimer's trial; in the latest phase, the drug was successful in a six-month study involving 100 subjects. Biohaven anticipates that this trial will be completed in the fourth quarter of 2020.

Additionally, it is expecting to obtain top-line data from the OCD trial in Q2. Such information should be available from the SCA trial at some point next year.

But the news about the GAD trial is hanging heavy over the shares of the biotech company. Biohaven's stock was down by more than 8% at the close of trading Monday.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Biohaven Pharmaceutical Holding Company Ltd. Stock Quote
Biohaven Pharmaceutical Holding Company Ltd.
BHVN
$143.79 (-0.28%) $0.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.