Why Biohaven Stock Triumphed on Tuesday
News of a big and important regulator's move was the electricity that powered Biohaven (NYSE: BHVN) stock to an 11%-plus gain on the second trading day of the week. Its leading investigational drug is now significantly closer to potential approval, and many are feeling bullish about the company. Its Tuesday pop was quite the outlier, given that the S&P 500 index only traded sideways.
Before market open, Biohaven announced that the U.S. Food and Drug Administration (FDA) had accepted its New Drug Application (NDA) for troriluzole. This is a once-daily oral treatment for adults with spinocerebellar ataxia (SCA), the name for a clutch of inherited neurodegenerative disorders affecting the cerebellum of the brain and the spinal cord.
The FDA has granted priority review status to troriluzole. This designation is reserved for drugs that either represent a notable improvement over existing treatments on the market or are entirely new for an indication. Biohaven's medication falls into the latter category.
Source Fool.com
