"Citigroup gives Biohaven (BHVN.US) a 'buy' rating, bullish on the potential of its core drug rimegepant receiving FDA approval."

Biohaven's core driver is its main asset, troriluzole, which is potentially going to receive FDA approval - the drug is currently in the FDA review stage, with Citigroup Inc. giving the stock a buy rating and setting a target price of $28 per share. Citigroup analyst Samantha Semenkow's bullish thesis is based on two key supports: firstly, private investment firm Oberland Capital Management plans to inject up to $600 million into Biohaven, with this investment to be made in the form of milestone payments and royalties based on troriluzole's future net sales. Secondly, the FDA recently canceled the advisory committee meeting scheduled for troriluzole's marketing application for the treatment of spinocerebellar ataxia (SCA), while the PDUFA target action date for this indication is set for the fourth quarter. Semenkow emphasizes in her analysis that, after comprehensive evaluation of troriluzole's clinical data, regulatory precedents, and Oberland Capital's investment logic before regulatory decisions, she believes the likelihood of the drug being approved is over 50%. She further points out that this biotech company based in New Haven, Connecticut, has seen its stock price drop by nearly two-thirds in the past 12 months, and the current valuation already reflects the PDUFA approval risk. If troriluzole is ultimately approved, it is expected that Biohaven's stock price will see significant upside. On Wednesday, Biohaven closed up 8.97% at $14.70, and as of writing, the stock was up 4.42% after hours, trading at $15.35.