This $8.9 Million Buy Targets a Stock Down 68% With $322 Million in Cash

By Jonathan Ponciano – Mar 21, 2026 at 7:49PM ESTKey PointsDAFNA Capital Management bought 720,000 shares of Biohaven in the fourth quarter; the estimated trade size was $8.92 million, based on average prices in the fourth quarter of 2025.Meanwhile, the quarter-end value of the position rose by $7.25 million, reflecting both the share increase and stock price changes during the period.Post-trade, the fund held 955,235 shares valued at $10.78 million, accounting for 2.51% of AUM, which places it outside the fund's top five holdings.DAFNA Capital Management reported a buy of 720,000 shares of Biohaven (BHVN 0.22%) in a February 17, 2026, SEC filing, with the estimated transaction value at $8.92 million based on quarterly average pricing.What happenedAccording to a February 17, 2026, SEC filing, DAFNA Capital Management increased its position in Biohaven by 720,000 shares during the fourth quarter of 2025. The estimated value of this trade was $8.92 million, based on quarterly average pricing. The stake’s total value at quarter-end was $10.78 million, up $7.25 million from the previous period, a change reflecting both the additional shares and movements in the stock’s price.What else to knowDAFNA’s Biohaven position now represents 2.51% of its reportable U.S. equity assets after this buy.Top five holdings after the filing:NASDAQ:RVMD: $48.15 million (11.3% of AUM)NYSEMKT:XBI: $41.03 million (9.7% of AUM)NYSEMKT:STXS: $31.47 million (7.4% of AUM)NASDAQ:ATRC: $23.63 million (5.6% of AUM)NASDAQ:CYTK: $23.57 million (5.5% of AUM)As of Friday, Biohaven shares were priced at $8.93, down a staggering 68% over the past year and significantly underperforming the S&P 500, which is instead up about 15% in the same period.Company overviewMetricValuePrice (as of Friday)$8.93Market Capitalization$1.3 billionNet Income (TTM)($738.8 million)Company snapshotBiohaven develops clinical-stage therapies targeting neurological and immunoscience diseases, with no commercialized products or revenue as of the latest reporting period.The firm operates a research-driven business model, generating value through the advancement of its proprietary pipeline toward regulatory approval, and potential future commercialization or partnerships.Its primary customers are expected to be healthcare providers, hospitals, and specialty clinics treating neurological and immune-related conditions once products reach the market.Biohaven is a biotechnology company focused on the development of novel therapies for neurological and immunoscience disorders. The company leverages its scientific expertise to advance a pipeline of clinical-stage assets, aiming to address unmet medical needs and improve patient outcomes. With a strategic emphasis on innovation and potential market disruption, Biohaven seeks to establish a competitive edge through differentiated science and targeted indications.What this transaction means for investorsThis is the kind of move that only makes sense if you believe the story is about what happens next, not what just happened. Biohaven’s stock is down nearly 70% over the past year, but the underlying company has quietly reshaped itself around a much tighter set of priorities.That comes as management makes important moves, cutting spending, narrowing its focus to three late-stage programs, and pushing toward a cluster of meaningful readouts this year, including epilepsy, immunology, and obesity. That shift matters more than the headline losses. The company still posted a net loss of roughly $739 million last year, but that number reflects a business in transition rather than one standing still.And of course, liquidity also buys time. With about $322 million in cash at year-end and additional capital raised after, the runway looks more stable than the share price implies. Ultimately, in the context of a portfolio already loaded with higher-conviction biotech names, this position reads like optionality. It is not a core bet, but a calculated swing at asymmetric upside if even one of those late-stage programs delivers.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedBiohavenNYSE: BHVN$8.94(-0.22%)-$0.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.