Biohaven Narrows Net Loss 31% as R&D Spending Drops
The neuroscience drugmaker's GAAP net loss shrank to $137.3 million in the second quarter after a sweeping program reprioritization slashed research spending nearly in half.
Biohaven Ltd. (BHVN) reported a sharply narrower second-quarter loss, as a strategic overhaul of its research pipeline drove a 45% drop in R&D spending and pushed the company closer to a leaner operating profile.
The neuroscience drugmaker posted a GAAP net loss of $137.3 million, or $0.91 a share, for the three months ended June 30, down from $198.1 million, or $1.94 a share, a year earlier. On a non-GAAP basis, the adjusted net loss narrowed 29% to $118.1 million, or $0.78 a share. The per-share improvement was amplified by a 47% increase in weighted average shares outstanding to 150.6 million, reflecting dilutive equity activity over the past year.
R&D expenses fell to $100.8 million from $184.4 million in the year-ago quarter, a decline due to program reprioritization implemented in late 2024 and the absence of one-time developmental milestones — $15 million for BHV-8000 and $10 million for BHV-1530 — that had inflated the prior-year quarter. General and administrative expenses also declined 12% to $24.1 million, driven by lower legal and employee costs. For the first half of 2025, total operating expenses fell 41% to $255.3 million, and the net loss narrowed to $267.8 million from $419.8 million.
The cost discipline came as Biohaven advanced two new clinical programs. The company initiated a pivotal Phase 3 trial of BHV-1300 in Graves' disease in June, enrolling roughly 300 adults with topline data expected in the second half of 2025. BHV-8100, an oral PKM2 modulator, achieved first-in-human dosing during the quarter, marking its entry into clinical development. Biohaven also announced a new clinical supply agreement with Regeneron for BHV-1530 in combination with cemiplimab, expanding the companies' existing collaboration.
The narrower losses were partly offset by a $25.8 million swing to other expense from other income, driven by non-cash fair value losses on notes payable under a financing arrangement with Beetlejuice SA and Oberland Capital, and the absence of prior-year gains on forward contracts and derivative liabilities. Notes payable rose to $259.5 million from $238.9 million at year-end 2024, reflecting additional borrowings under the same facility.
Cash, cash equivalents, marketable securities and restricted cash stood at $270.5 million as of June 30, down from $368.3 million in total current assets at the end of 2024. Marketable securities fell to $29.8 million from $89.2 million, while prepaid expenses dropped to $27.0 million from $47.0 million. Shareholders' equity eroded to $12.2 million from $52.1 million at year-end, and the accumulated deficit widened to $2.35 billion. Common shares outstanding rose 14% to 151.0 million.
Accrued expenses and other current liabilities fell 52% to $50.5 million, a decline that, combined with the R&D pullback, signals Biohaven is consolidating around a smaller set of clinical bets as it works to extend its cash runway.