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Why Is Biohaven Pharmaceutical Holding Company Ltd. (BHVN) Up 21.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Biohaven Pharmaceutical Holding Company Ltd. (BHVN - Free Report) . Shares have added about 21.7% in that time frame, outperforming 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 Q2 Earnings Miss Estimates, Revenues In Line

Biohaven incurred loss of $3.23 per share in second-quarter 2021, wider than the Zacks Consensus Estimate of a loss of $2.77 as well as the year-ago loss of $3.08.

Adjusted loss, which excludes non-cash stock-based compensation and few other non-cash expenses, for the second quarter was $2.62 per share compared with $2.55 in the year-ago period. The dismal bottom-line performance was due to higher operating expense during the quarter.

Total revenues, solely from Nurtec ODT, were $92.9 million in the second quarter, up almost 112.1% sequentially. Revenues were in line with the Zacks Consensus Estimate. The company recorded revenues of $9.7 million in the year-ago quarter.

Quarter in Detail

Research and development (R&D) expenses, including stock-based compensation, were $77.4 million in the quarter, up 82.5% year over year driven by higher clinical activities.

Selling, general and administrative (SG&A) expenses were $170 million in the quarter, up 36.3% from the year-ago period. The significant increase in SG&A expense was driven by higher costs to support the commercialization of Nurtec.

As of Jun 30, 2021, Biohaven had cash and restricted cash worth $368 million compared with $570.9 million as of Mar 31, 2021.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Biohaven Pharmaceutical Holding Company Ltd. has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. 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.


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