Biohaven BHVN stock climbed 17.9% on Wednesday after the announcement of a strategic global licensing and collaboration agreement with South Korea-based SK Biopharmaceuticals. Under the deal, SK Biopharmaceuticals will receive exclusive worldwide rights to Biohaven's Kv7 ion channel platform, led by opakalim (BHV-7000), undergoing mid- to late-stage development for focal epilepsy.
Under the terms, SK Biopharmaceuticals will provide upfront and milestone payments of up to $795 million related to the Kv7 platform. Biohaven will receive $400 million in cash consideration, including $350 million payable at closing and an additional $50 million payable in 2027. BHVN is also eligible for up to $150 million in development and regulatory milestone payments related to opakalim.
In addition, Biohaven will receive tiered royalties on U.S. net sales of opakalim ranging from the mid-teens to the low twenties, along with mid-single-digit royalties on net sales outside the United States, upon potential commercialization. SK Biopharmaceuticals will also assume responsibility for Kv7 program costs going forward, including specified obligations to Knopp Biosciences and future Kv7-related milestone obligations totaling up to $245 million.
BHVN’s Late-Stage Kv7 Candidate Targets Focal Epilepsy
Opakalim is a next-generation, selective Kv7.2/7.3 potassium channel activator being developed for focal epilepsy. Per Biohaven, the candidate’s unique mechanism of action may help reduce CNS side effects such as drowsiness, dizziness and fatigue, thereby improving patient tolerability. It is designed as a once-daily oral treatment without titration.
Opakalim has been studied in more than 1,200 participants across multiple clinical studies. Biohaven is currently conducting two phase II/III studies of opakalim versus placebo as an adjunctive treatment for refractory focal-onset epilepsy. One of these, the RISE3 study, is expected to report top-line results in the second half of 2026. Additionally, the company is also conducting an open-label extension study to assess the candidate’s long-term efficacy and safety. Apart from this, BHVN's pipeline includes several other candidates being developed for immunological diseases, obesity, pain disorders, neuroinflammatory disorders and oncology across various stages of clinical development.
Year to date, Biohaven shares have rallied 50.2% compared with the industry’s 12.6% growth.
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Rationale Behind the Deal
The agreement provides Biohaven with a substantial near-term cash influx while preserving exposure to the potential commercial success of opakalim in focal epilepsy. The $400 million in cash consideration provides immediate, non-dilutive funding that should strengthen the company's balance sheet and provide greater financial flexibility to advance its broader pipeline. At the same time, the milestone and royalty structure allows Biohaven to retain meaningful long-term participation in the value generated by the Kv7 platform.
The transaction also reduces Biohaven's future financial obligations associated with the Kv7 program. By transferring responsibility for ongoing program costs and certain existing and future milestone commitments to SK Biopharmaceuticals, Biohaven can lower the capital burden required to advance the platform. This should allow the company to allocate more resources toward other pipeline programs while avoiding the substantial costs associated with building its own commercial infrastructure for opakalim.
The partnership further provides Biohaven with access to SK Biopharmaceuticals’ established epilepsy development and commercial capabilities. The company currently markets Xcopri (cenobamate) in the United States for partial-onset (focal) seizures in adults and has built significant expertise in the epilepsy market. Through its U.S. subsidiary, SK Life Science, the company maintains a dedicated epilepsy commercial organization, including a neurology field force of more than 150 professionals and established coverage of epilepsy centers and neurologists. This infrastructure gives Biohaven an established commercial pathway for opakalim, subject to successful development and commercialization.
For SK Biopharmaceuticals, the agreement adds a late-stage epilepsy candidate to its portfolio. The company’s experience in developing and commercializing an antiseizure medicine, along with its established U.S. epilepsy infrastructure, positions it to advance opakalim and potentially bring it to patients more efficiently. The deal also gives it access to Biohaven’s broader Kv7 platform, creating potential opportunities for additional candidates beyond opakalim.
The transaction remains subject to completion of applicable regulatory and antitrust reviews, including review under the Hart-Scott-Rodino Antitrust Improvements Act in the United States, along with other customary closing conditions. The transfer of the rights and associated responsibilities will therefore be completed after the required conditions are satisfied.
Biohaven Ltd. Price and Consensus
Biohaven Ltd. price-consensus-chart | Biohaven Ltd. Quote
BHVN’s Zacks Rank and Stocks to Consider
Biohaven currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Amneal Pharmaceuticals AMRX, which sports a Zacks Rank #1 (Strong Buy), while AC Immune ACIU and Precigen PGEN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1 to $1.02 for 2026. Over the same period, estimates for earnings per share increased from $1.12 to $1.21 for 2027. AMRX shares have risen 42.7% year to date.
Amneal Pharmaceuticals beat earnings in each of the trailing four quarters, delivering an average surprise of 32.82%.
Over the past 30 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents. ACIU shares have lost 9.3% year to date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.
Over the past 30 days, estimates for Precigen’s 2026 loss per share have improved from a loss of 2 cents to earnings of 25 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 86 cents. PGEN shares have surged 77.5% year to date.
Precigen’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.
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This article originally published on Zacks Investment Research (zacks.com).