Why did Biohaven's net profit drop sharply in Q2 2024?

Biohaven's net profit dropped sharply in Q2 2024 due to several factors: 1. **Increased Research and Development Expenses**: Biohaven's net loss for the quarter was significantly higher than previous quarters, reporting a net loss of $319.77 million for Q2 2024. This was primarily due to increased research and development (R&D) expenses, including the advancement of their innovative pipeline and the conduct of clinical trials for various therapeutic candidates. 2. **Clinical Trial Costs**: The company's pipeline includes multiple assets across six therapeutic areas, indicating an active and potentially costly clinical development phase. The optimization and expansion of clinical trials, as well as the preparation for regulatory submissions, contribute to the elevated R&D expenses. In summary, the significant drop in Biohaven's net profit in Q2 2024 is primarily attributed to the substantial increase in R&D expenses, driven by the company's aggressive pipeline development and clinical trial activities.