Biohaven’s depression drug fails key trial, stock plunges 11%
Shares in Biohaven (BHVN) fell sharply after its experimental depression drug failed a key trial. The company’s stock dropped by around 11% in after-hours trading following the announcement. The setback comes from a phase 2 study of BHV-7000, which did not deliver the hoped-for results in patients with depression.
The phase 2 trial aimed to measure BHV-7000’s effect on depressive symptoms over six weeks. Researchers used the Montgomery Åsberg Depression Rating Scale (MADRS) as the primary benchmark. Despite some positive trends in patients with more severe depression at the start, the drug failed to meet its main goal.
Biohaven has now confirmed it will halt all further psychiatric clinical trials for BHV-7000. The company did not name any other institutions or researchers taking over the work. No successor sponsors have been identified in public reports, leaving the drug’s future uncertain. The decision marks the end of Biohaven’s active development in this area. No additional studies are planned, and the company has not indicated any alternative paths for the candidate.
The trial’s failure has led to an immediate drop in Biohaven’s share price. Without further research, BHV-7000 will not advance to later-stage testing. The company’s withdrawal from psychiatric trials means no new data on the drug’s effectiveness will be produced.
