Is BioHaven Pharma Stock A Buy?

Is BioHaven Pharma Stock A Buy? By and large, the world of medicine depends on innovation. Any good doctor, researcher, or pharmaceutical company exists in a constant state of discovery, searching for the next revolutionary treatment or drug to help better the human race.

We’ve seen this kind of innovation lately with the various COVID-19 vaccines and treatments in the news, but it’s really nothing new — this kind of fast-paced implementation of the scientific method truly defines the medical field.

BioHaven Pharmaceutical Holding Company Ltd. — publicly traded on the New York Stock Exchange as BHVN — is just one of many companies who proves this with their leadership in both medical and academic fields. With that being said, is BioHaven Pharma stock a buy?

What Does BioHaven Pharma Do?

As a clinical-stage biopharmaceutical company, BioHaven Pharma boasts many revolutionary product candidates in the end stages of the trial phase. The company’s products tend to focus exclusively on targeting neurological and neuropsychiatric diseases in hopes of treating (or outright eradicating) rare disorders.

Through the help of investors and other entrepreneurial efforts, BioHaven Pharma is able to develop these life-changing (and potentially even life-saving) drugs.

Beyond this, BioHaven Pharma has also combined their research efforts with other recognizable institutions and companies such as AstraZeneca (AZN), Bristol-Myers Squibb (BMY), Catalent, and Yale University.

One of the most notable examples of this is rimegepant, sold under the brand name Nurtec ODT. Despite originally being discovered at Bristol-Myers Squibb, BioHaven Pharma developed, tested, and eventually distributed the acute migraine treatment for adults.

How High Will BioHaven Pharma Stock Go?

Since going public in the first half of 2017, BioHaven Pharma stock has seen many ups and downs. Initially, it sat right under $18 a share. Over the course of the rest of 2017, BHVN share price rose as high as $38 in early September, then sank back down to right under $27 by the end of December.

The next year, 2018, saw similar ups and downs: BioHaven Pharma stock peaked at $43 a share in July after it sank as low as $26 a share in April. By December of 2018, it was almost exactly where they were twelve months prior — it closed out the year right around $34.

The year following, 2019, saw an all new high: $67 in June. The year after that, 2020, saw their lowest price point since 2018: $29 in April, right after the onset of COVID-19 in America.

Clearly, there’s nothing for certain about BioHaven Pharma apart from the fact that it’s destined to rise and fall quite often.

The end of November 2020 put its stock at the highest price ever, $98 a share, only for it to continually fall from that point to today — BioHaven Pharma stock is currently going for just under $70 a share.

From this point onward, investors and traders are torn on how BioHaven Pharma will perform. Historically, looking back at their past few years on the New York Stock Exchange, BioHaven Pharma seems to perform exceptionally well in the summer.

Revenues are anticipated to rise in coming quarter but earnings projections paint a more pessimistic picture.

With the warmer months imminent, it wouldn’t be shocking to see BioHaven Pharma rise in the coming weeks to match past years’ trends. Just how high it will rise is even less clear.

On the high end, some see the stock price rising to over $110. On the low end, some see it only rising a few dollars to $75. Regardless of how much it’ll end up being exactly, it seems that everyone expects a rise of some sort for BioHaven Pharma stock in the very near future.

BioHaven Pharma Stock Is Predictably Volatile

There’s no stock on the market that doesn’t come with its fair share of risks. When deciding whether or not to invest in BioHaven Pharma stock, consider these hurdles before you seal the deal: Mainly, there’s the risk of BioHaven Pharma stock rising simply to fall again. This is practically a given, based on past years.

However, if you hold onto your shares, you can probably depend on another rise that’ll set a new record high each year. That’s just how they’ve operated since going public — Two big steps forward, then one step back.

Then, of course, there’s always the chance that one of their treatments or drugs could run into trouble. When this happens, it’s not uncommon to see the price per share fall. Either one of these risks — or both! — could end up coming true at some point, and it’s important not to forget that when deciding to invest.

BioHaven Pharma Vs Pelago, Aurora & Pfenex

Naturally, BioHaven isn’t the only biopharmaceutical company out there. BioHaven Pharma has many competitors — including Pelago Bioscience, Aurora Biomed, Pfenex, and Adlon Therapeudics, just to name a handful — and they’re all equally competitive and innovative.

It’s the nature of the medical field: Your company could be developing the next big thing at the same time as someone else.

After all, as they say, there’s more than one way to crack an egg. There is a chance that BioHaven Pharma competitors could win over BioHaven at some point, just as there is a chance that it’s happened before.

The Bottom Line: Is BioHaven Pharma Stock A Buy?

So, is BHVN a good investment? Considering the innovative nature of BioHaven pharmaceuticals and trends that they’ve shown since coming onto the New York Stock Exchange in 2017, it seems likely that BioHaven Pharma stock will continue to rise and fall and rise again as they progressively grow in value over the coming years.

As long as investors and traders aren’t turned away by dips, it’s fair to say that BioHaven Pharma will pay off in the long run so long as it’s held on to.

In other words, yes — BioHaven Pharma stock seems like a buy, especially if this summer goes well for them like it has in summers past.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.