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Biohaven Insiders Buy More Shares – Insider Weekends

  • April 28, 2024
Biohaven (BHVN): $38.97 Market Cap: $3.44B Enterprise Value: $3.09B Key Insights: “New” Biohaven was created when Pfizer spun-out the product portfolio it did not retain after acquiring “old” Biohaven for its migraine treatments. Biohaven retained its CEO, was funded with $275 million in cash by Pfizer and was entitled to certain royalty payments. We saw insider buying even before Pfizer’s acquisition of old Biohaven was complete and the insider buying continued in new Biohaven after the spinoff.  A significant portion of this insider buying was related to secondary offerings by Biohaven as it continues to expand its product portfolio and continues to burn cash at an escalating rate. The CEO and two directors participated in its latest $230 million secondary offering but one of those directors also decided to buy an additional $1 million worth of stock after the offering. The company is a clinical stage and has all the risk inherent with that stage of a company but has a portfolio of drugs that target epilepsy, mood disorders, OCD, spinal muscular atrophy, obesity and cancer. I first wrote about Biohaven in a May 2022 mid-month update when covering a merger arbitrage plus spin-off combo situation where I mentioned: I...

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