Biohaven shares climb 7% after signing major SK Biopharmaceuticals licensing deal

Biohaven Ltd. (NYSE:BHVN) shares gained 7% on Wednesday after the biotechnology company announced a strategic global licensing agreement with SK Biopharmaceuticals covering its Kv7 ion channel platform and epilepsy candidate opakalim.

The transaction could deliver up to $795 million in upfront and milestone payments associated with the Kv7 platform, while also providing Biohaven with ongoing royalty opportunities tied to future sales.

Biohaven to receive $400 million in cash consideration

Under the agreement, Biohaven will receive $400 million in cash, comprising $350 million at closing and a further $50 million in 2027.

The company is also eligible for an additional $150 million in development and regulatory milestone payments, alongside royalties on global net sales.

For U.S. net sales of opakalim, Biohaven is entitled to tiered royalties ranging from the mid-teens to the low twenties.

The structure gives Biohaven substantial near-term cash consideration while preserving exposure to the potential commercial success of the Kv7 programme.

Opakalim advances through late-stage epilepsy development

Opakalim is the lead candidate emerging from Biohaven’s Kv7 platform and is being developed as a selective activator of Kv7.2/7.3 potassium channels.

The treatment is currently undergoing Phase 2/3 development for focal epilepsy, with topline results from the RISE3 trial expected during the second half of 2026.

Opakalim has been designed as a once-daily oral treatment that does not require titration, potentially offering a simplified treatment option if clinical development and regulatory review are successful.

SK Biopharmaceuticals takes responsibility for programme costs

As part of the transaction, SK Biopharmaceuticals will assume responsibility for future costs associated with the Kv7 programmes.

These include certain specified obligations totalling $245 million, as well as mid-single-digit royalty commitments payable to Knopp Biosciences.

The agreement combines Biohaven’s development-stage Kv7 technology with SK Biopharmaceuticals’ established commercial presence in epilepsy.

SK Biopharmaceuticals already markets XCOPRI for partial-onset seizures in adults in the U.S. and has developed an epilepsy-focused commercial organisation comprising more than 150 professionals.

Deal remains subject to regulatory clearance

Completion of the licensing agreement remains dependent on regulatory and antitrust approvals, including review under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, together with other customary closing conditions.

The transaction provides Biohaven with significant upfront funding, reduces its future financial obligations associated with the Kv7 platform and retains potential upside through milestones and royalties, helping explain the positive reaction in BHVN shares.

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