Biohaven (BHVN) Shares Plunge 8.30% to New Low as Liquidity Woes and Selling Pressure Intensify

Biohaven (BHVN) shares plunged 8.30% on October 10, 2025, hitting a new low since October 2025 with an intraday drop of 8.82%, signaling intensified investor skepticism. The decline followed a recent 4.6% fall on October 8 amid a 90% drop in trading volume, underscoring liquidity challenges and strategic selling pressure.

Analyst activity has been a key driver of sentiment. Citigroup upgraded Biohaven with a “Buy” rating and a $28.00 price target in late September, while UBS trimmed its target to $26.00 but retained a “Buy” stance. Despite 14 analysts covering the stock, with a consensus price target of $48.85, the recent selloff highlights a widening gap between current valuations and long-term expectations. Older August 2025 reports, including Morgan Stanley’s lowered target, are less relevant amid September’s updated guidance.

The company’s drug pipeline remains a focal point for investors. Troriluzole, in Phase 3 trials for spinocerebellar ataxia, and BHV-7000 for bipolar disorder are critical near-term catalysts. However, legal risks emerged in September 2025 with a class-action lawsuit alleging overstated regulatory prospects for these candidates. While the firm’s diverse portfolio offers growth potential, biotech sector volatility and clinical delays could amplify price swings.

Financial metrics underscore Biohaven’s high-risk profile. With a $1.61 billion market cap, a negative P/E ratio, and a debt-to-equity ratio of 1.91, the company’s leverage exposes it to both upside and downside shocks. Recent trading anomalies, including the sharp volume contraction on October 8, suggest institutional or algorithmic selling, compounding near-term uncertainty as investors weigh clinical, regulatory, and legal challenges against long-term pipeline potential.