The past several trading days have proven highly rewarding for clinical-stage biotechnology company Biohaven (BHVN). The company has announced two major advancements in succession: a sizable licensing and collaboration agreement with a peer company, and a favorable ruling in a lawsuit. Bolstered by these dual positive catalysts, Biohaven’s stock price had surged more than 16% for the week as of before Friday’s opening, according to data compiled by S&P Global Market Intelligence.
Of the two developments, the one with more far-reaching market impact was the collaboration agreement announced early Wednesday morning. Biohaven issued a statement that SK Biopharmaceuticals of South Korea will pay the company a total of up to $795 million in upfront and milestone payments in exchange for the global exclusive license to its Kv7 ion channel platform. At the same time, SK Biopharmaceuticals also obtained rights to Biohaven’s lead candidate, opakalim, which is being developed for the treatment of focal epilepsy. Under the terms of the agreement, should the drug receive U.S. Food and Drug Administration (FDA) marketing approval in the future, SK Biopharmaceuticals will also pay Biohaven tiered royalties based on the drug’s sales in the United States and assume all research and development costs for the Kv7 program.
On the legal front, on Tuesday, a judge in the U.S. District Court for the District of Delaware issued a ruling in favor of Biohaven and Yale University, based on the jury’s verdict from the previous month. The two institutions had filed lawsuits against biotechnology companies Avilar Therapeutics and RA Capital Management for trade secret misappropriation and breach of contract. Under the ruling, Biohaven and Yale University will collectively receive a total of $4 million in damages.
For the biotechnology industry, which consistently operates in a state of high capital consumption, a company receiving both a licensing partnership and a favorable legal outcome within a short period is undoubtedly a significant boost to market confidence. Although its core candidate, opakalim, has shown inconsistent results in clinical trials for certain indications, leaving its future commercialization path still uncertain, the sizable licensing agreement with SK Biopharmaceuticals is undoubtedly the most noteworthy highlight at present. It provides Biohaven with substantial financial support and a strategic partner for its future development.
