Is Biohaven's expense structure improving long-term?

**Biohaven's expense structure is not currently forming an improving trend.** Here's the analysis to support this conclusion: 1. **R&D Expenses**: Biohaven's R&D expenses have been on an upward trend, reaching $795.9 million in 2024. This is a significant increase from previous years, with figures for 2023 being $373 million, 2022 being $437 million, and 2021 being $181 million. The increase is due to the company's aggressive research and development efforts, particularly in areas like immunology, neuroscience, and oncology. |code|Ticker|Name|Date|R&D Expenses (FY)|market_code| |---|---|---|---|---|---| |BHVN|BHVN.N|Biohaven|2020|9.846E7|169| |BHVN|BHVN.N|Biohaven|2021|1.81486E8|169| |BHVN|BHVN.N|Biohaven|2022|4.37072E8|169| |BHVN|BHVN.N|Biohaven|2023|3.73281E8|169| |BHVN|BHVN.N|Biohaven|2024|7.95871E8|169| 2. **SG&A Expenses**: The SG&A expenses have also been on the rise, with figures of $89 million in 2021, $131 million in 2022, and a notable $227.2 million in the first quarter of 2022. This indicates that Biohaven is investing heavily in selling, general, and administrative functions, which could be a result of the company's growth and the need to support its expanding product pipeline and commercial operations. 3. **Cash Position**: Despite the high expenses, Biohaven has maintained a strong cash position, with cash, cash equivalents, marketable securities, and restricted cash totaling approximately $489 million as of December 31, 2024. This indicates that the company has the financial capacity to sustain its current level of investment in R&D and SG&A. 4. **Clinical Development**: Biohaven is actively advancing multiple clinical programs across various therapeutic areas, with several assets expected to enter Phase 1 studies in the near future. The company's pipeline includes innovative treatments for neurological and neuropsychiatric diseases, which requires significant investment in clinical trials and development. 5. **Market Position**: Biohaven has already achieved regulatory milestones, such as the acceptance of the NDA for troriluzole in spinocerebellar ataxia, which is expected to be approved in 3Q 2025. The company's lead asset, Nurtec ODT, has been successful in the migraine market, contributing to Biohaven's revenue and highlighting the need for continued investment in commercialization and R&D. In conclusion, while Biohaven's R&D and SG&A expenses are currently very high, this is a strategic investment in the company's growth and the development of innovative therapies. The company's strong cash position and ongoing clinical and regulatory achievements suggest that Biohaven is managing its expenses effectively to achieve its long-term goals in the biopharmaceutical sector.