What happened
Shares of Biohaven (BHVN 1.12%) skyrocketed by 28.2% as of 11:10 a.m. ET Wednesday after the biopharmaceutical company submitted a regulatory filing to the Securities and Exchange Commission that included a new investor presentation.
The big news in that new presentation related to Biohaven's experimental drug BHV-1300. Biohaven revealed that in phase 1 clinical trials, repeat dosing with the drug reduced the antibody immunoglobin G (IgG) by more than 90%. The company also stated in the presentation that BHV-1300 "can specifically remove target IgG from circulation faster than FcRn inhibitory antibodies, antibody fragments, or immunosuppressants."
So what
Biohaven's news could bode well for BHV-1300 as a treatment for a number of autoimmune diseases. The list includes common diseases such as rheumatoid arthritis as well as rare ones such as generalized myasthenia gravis. Biohaven believes that its drug could be highly differentiated from competitors based on its mechanism of action, rapid onset, and the potential for a better safety profile.
Investors were no doubt thinking about the size of the potential opportunity for BHV-1300 after the new presentation was released. The global market for rheumatoid arthritis drugs alone tops $60 billion annually, according to market researcher Facts and Factors.
Now what
BHV-1300 still has a long way to go. Biohaven plans to advance the drug into phase 2 clinical testing in 2024. However, the biotech company could have other potential catalysts on the way. Biohaven expects to announce results from a phase 1 EEG study of BHV-7000 by the end of 2023. It also intends to kick off pivotal clinical trials of the drug in treating focal epilepsy and bipolar disorder later this year.
