Biohaven could rival Argenx and Immunovant after unveiling promising results Wednesday on an experimental treatment for autoimmune diseases. BHVN stock rocketed more than 44% at one point.
The biotech company is in the early stages of testing a drug that degrades immunoglobulin G, an antibody tied to numerous autoimmune diseases. Biohaven said nonhuman primates who received repeated doses of its drug experienced a 90% decrease in their immunoglobulin G, or IgG, levels.
In comparison, under-the-skin shots from Argenx and Immunovant have cut down on IgG by 63% and 66%, according to recent studies. Immunovant stock skyrocketed 97% on Tuesday after the company unveiled results of a test for its second-generation IgG-lowering drug. Also, Argenx already has a drug approved in this space called Vyvgart.
"With other agents demonstrating clean safety and robust IgG lowering, interest in this space is clearly on the rise," Piper Sandler analyst Christopher Raymond said in a report to clients. "Coupling that with Argenx's strong Vyvgart launch, the commercial opportunity is self-evident, in our view."
On today's stock market, BHVN stock surged 33.3% to close at 23.53. Immunovant shares reversed an earlier pop, sinking 1.1% to finish at 39.52, following Tuesday's strong gain, with a $300 million public and private stock offering. Meanwhile, Argenx stock fell 1.2% to 477.79.
BHVN Stock: A Distant Contender
It's important to note Biohaven is a distant contender in the IgG-lowering space.
Argenx's Vyvgart is already approved to treat generalized myasthenia gravis, a condition that impacts the skeletal muscles. Further, it has shown promise in patients with chronic inflammatory demyelinating polyneuropathy, a neurological disease that leads to progressive weakness. Immunovant also has two drugs in this space and both are already in human testing.
But Biohaven's efforts could have some legs, Piper Sandler's Raymond said. Drugs from Argenx and Immunovant lower immunoglobulin G by blocking the neonatal Fc receptor. Left alone, this receptor binds to the IgG antibody to help it stay in the blood longer.
Biohaven is taking a different track with its drug, BHV-1300. It binds to a different receptor called ASGPR. This leads to a more "direct" impact on immunoglobulin G, Raymond said. Further, on Wednesday, BHVN stock surged to a two-month high.
In a presentation Wednesday, Biohaven said a single dose of its drug reduced IgG antibodies in mice blood by 40% over two hours. It also had no impact on cholesterol, triglycerides or albumin. The latter is a protein that, when heightened, indicates a patient is dehydrated or experiencing diarrhea.
Immunovant's first-generation drug — still in testing — caused increases in albumin and LDL cholesterol. Promisingly, Immunovant said Tuesday its second-generation approach didn't lead to the same increases.
Could Biohaven Take On Leader Argenx?
Biohaven says its drug shows "potential superiority over standard of care," Vyvgart. In nonhuman primates, BHV-1300 depleted the blood of IgG faster than Vyvgart. Now, the company plans to start a Phase 2 test in 2024.
Raymond notes Biohaven's approach can lead to a faster and deeper impact on IgG with fewer side effects than rivaling drugs from Argenx and Immunovant. Biohaven's first focus appears to be rheumatoid arthritis "which we think represents a massive opportunity in and of itself," he said.
"Clearly, nonhuman primate data (is) fraught with pitfalls," Piper Sandler's Raymond said. "Nonetheless, we do think this bodes well for BHV-1300 as a serious player in what's arguably one of the hotter spaces in the sector."
Further, he kept his outperform rating on BHVN stock.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
