🔒Biohaven strikes epilepsy drug licensing deal worth up to $795M

New Haven-based biotechnology company Biohaven Ltd. said it has reached an international licensing agreement valued at up to $795 million tied to an experimental epilepsy drug.

Biohaven develops potential treatments for neurological, immune-system and other diseases. The publicly traded company was formed in 2022 after pharmaceutical giant Pfizer acquired its predecessor for $11.6 billion. Pfizer received Biohaven’s migraine treatments, including Nurtec ODT, while the newly formed Biohaven retained a portfolio of experimental drugs.

Under the agreement announced Wednesday, South Korea-based SK Biopharmaceuticals will receive exclusive worldwide rights to a Biohaven drug-development platform led by opakalim, a once-daily oral treatment being studied for focal epilepsy — a condition in which seizures begin in one area of the brain.

Biohaven, led by CEO and Chairman Vlad Coric, will receive $350 million when the deal closes and another $50 million in 2027. It could collect an additional $150 million if the drug reaches certain development and regulatory milestones, along with royalties if it is eventually approved and sold.

SK Biopharmaceuticals will also take responsibility for the program’s future costs and assume up to $245 million in potential payments related to Biohaven’s earlier agreement with Pittsburgh-based Knopp Biosciences. Altogether, the deal involves upfront, milestone and assumed payments of up to $795 million, the companies said.

Opakalim is undergoing mid- to late-stage clinical testing. Results from one of its trials are expected during the second half of 2026.

Biohaven and SK Biopharmaceuticals will collaborate on the drug’s continued development and pursuit of U.S. Food and Drug Administration approval, the companies said.

SK Biopharmaceuticals already sells an epilepsy medication in the United States and has an established sales operation focused on neurological treatments.

The cash infusion is significant for Biohaven, which reported having $270.5 million in cash, cash equivalents, marketable securities and restricted cash as of June 30. The clinical-stage drug developer posted a second-quarter net loss of $137.3 million, down from $198.1 million a year earlier.

Biohaven spent $100.8 million on research and development during the quarter, down from $184.4 million a year earlier following a reprioritization of its drug-development programs.

Biohaven said the agreement with SK Biopharmaceuticals will strengthen its finances, reduce future expenses and allow it to invest in other experimental treatments without creating its own sales operation for opakalim.

The deal remains subject to regulatory review and other customary closing conditions.