Biohaven Ltd. priced a new public offering of 23,333,334 common shares at $7.50 each, a gross raise of roughly $175 million before underwriting fees. The offering, which includes a 30‑day option to purchase an additional 3,500,000 shares, is expected to close on November 13, 2025, and will be issued under an effective shelf registration statement on Form S‑3. The book‑running underwriters are J.P. Morgan, Goldman Sachs & Co. LLC, Leerink Partners, TD Cowen, and Cantor.
The proceeds will be used for general corporate purposes, a typical allocation for a clinical‑stage biopharmaceutical company that must sustain research and development pipelines. Biohaven’s cash position, at $263.8 million as of September 30, 2025, is under pressure, with a negative free‑cash‑flow of $650 million in the last twelve months. The new capital raise is intended to shore up liquidity and support the company’s strategic focus on three late‑stage programs—opakalim for epilepsy and depression, BHV‑1400 for IgA nephropathy, and BHV‑1300 for Graves’ disease—while cutting direct R&D spend by roughly 60%.
The offering comes on the heels of Biohaven’s Q3 2025 earnings, released on November 10, 2025. The company posted a GAAP net loss of $173.4 million, or $1.64 per share, versus a $160.3 million loss ($1.70 per share) in the same period last year. Non‑GAAP adjusted loss was $155.9 million ($1.47 per share) compared with $164.1 million ($1.74 per share) in Q3 2024. R&D expenses fell to $141.2 million from $157.6 million, driven by reduced direct program spending, while general and administrative costs rose to $28.2 million from $20.6 million, largely due to higher share‑based compensation and legal expenses.
Market reaction to the offering announcement was muted, reflecting investor concerns about dilution and the company’s weak financial health. The stock had already fallen 83% over the past year and was trading near its 52‑week low of $7.48. The announcement of a $150 million offering on November 11, 2025, had already pushed the share price down 7% in after‑hours trading, and the pre‑market decline on November 12 was 10.79%. Analysts noted that the dilutive nature of the new shares, coupled with the company’s high cash burn, weighed heavily on sentiment.
Biohaven also received a Complete Response Letter from the FDA for its Vyglxia candidate for spinocerebellar ataxia, adding regulatory uncertainty to the company’s outlook. Despite this setback, the company’s management remains focused on its three priority programs and has signaled confidence that the capital raise will provide the necessary runway to advance these assets.
Overall, the offering underscores Biohaven’s need to secure additional capital to sustain its research pipeline amid a challenging financial environment and regulatory hurdles. The company’s strategic shift toward fewer, high‑potential programs and the planned reduction in R&D spend aim to improve long‑term sustainability, but the immediate dilution and cash burn remain key concerns for investors.
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