Biohaven shares plunge after US FDA declines to approve brain disorder drug
1. Biohaven's shares dropped over 40% after FDA denial of treatment approval. 2. The rejection of the drug significantly impacts Biohaven's market position.
FAQ
Why Very Bearish?
The FDA's rejection of Biohaven's treatment fundamentally undermines its growth prospects, paralleling historic examples like Catalyst Pharmaceuticals, which saw significant drops after similar setbacks.
How important is it?
The FDA's decision is critical since it directly affects Biohaven's valuation and investor confidence.
Why Short Term?
Immediate sentiment will likely lead to further sell-offs, similar to recent reactions to unfavorable FDA news.