10-Q 1 bhvn-20220331.htm 10-Q bhvn-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-38080
bhvn-20220331_g1.jpg
Biohaven Pharmaceutical Holding Company Ltd.
(Exact Name of Registrant as Specified in its Charter)
British Virgin Islands Not applicable
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
c/o Biohaven Pharmaceuticals, Inc.
215 Church Street, New Haven, Connecticut
 06510
(Address of principal executive offices) (Zip Code)
(203) 404-0410
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Shares, no par valueBHVNNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
1



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmall reporting company
 Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of May 6, 2022, the registrant had 71,043,181 common shares, without par value per share, outstanding.
2











Part I.     Financial Information

Item 1.    Condensed Consolidated Financial Statements (Unaudited)

Index to Condensed Consolidated Financial Statements (Unaudited)
Page
Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2022 and 2021
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021
Notes to Condensed Consolidated Financial Statements

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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share amounts)
March 31, 2022December 31, 2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$169,065 $171,945 
Marketable securities433,410 192,648 
Trade receivable, net328,342 308,269 
Inventory91,281 80,608 
Prepaid expenses104,891 88,838 
Other current assets44,096 33,946 
Total current assets1,171,085 876,254 
Property and equipment, net14,534 14,690 
Intangible assets, net55,910 56,438 
Other assets130,188 129,830 
Total assets$1,371,717 $1,077,212 
Liabilities and Shareholders’ Deficit
Current liabilities:
Accounts payable$56,202 $51,683 
Accrued expenses and other current liabilities457,412 420,019 
Current portion of mandatorily redeemable preferred shares62,500 62,500 
Total current liabilities576,114 534,202 
Long-term debt634,106 626,720 
Liability related to sale of future royalties, net377,998 367,645 
Mandatorily redeemable preferred shares, net162,994 155,737 
Derivative liability9,120 13,110 
Obligation to perform R&D services36,016 50,571 
Other long-term liabilities41,782 12,236 
Total liabilities1,838,130 1,760,221 
Commitments and contingencies (Note 14)
Contingently redeemable non-controlling interests 60,000 
Shareholders’ deficit:
Common shares, no par value; 200,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 70,540,802 and 66,933,531 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
2,112,686 1,676,792 
Additional paid-in capital129,580 169,656 
Accumulated other comprehensive loss(2,398)(73)
Accumulated deficit(2,702,154)(2,585,755)
Total shareholders’ deficit attributable to Biohaven Pharmaceutical Holding Company Ltd.(462,286)(739,380)
Non-controlling interests in consolidated subsidiaries(4,127)(3,629)
Total shareholders' deficit(466,413)(743,009)
Total liabilities and shareholders’ deficit$1,371,717 $1,077,212 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
 
 Three Months Ended March 31,
 20222021
Revenues:
Product revenue, net$123,590 $43,823 
Collaboration and other revenue
195,262  
Total revenues318,852 43,823 
Operating expenses:
Cost of sales
26,342 12,862 
Research and development119,099 107,111 
Selling, general and administrative227,243 159,523 
Total operating expenses372,684 279,496 
Loss from operations(53,832)(235,673)
Other income (expense):
Interest expense(17,216)(7,731)
Interest expense on mandatorily redeemable preferred shares(7,917)(7,943)
Interest expense on liability related to sale of future royalties(17,314)(13,508)
Change in fair value of derivatives3,604 (210)
Gain from equity method investment
 5,261 
Other income (expense), net
81 (1,700)
Total other expense, net
(38,762)(25,831)
Loss before provision for income taxes
(92,594)(261,504)
Provision for income taxes
24,303 3,824 
Net loss(116,897)(265,328)
Net loss attributable to non-controlling interests
498 360 
Deemed dividend upon repurchase of preferred shares in consolidated subsidiary
(92,673) 
Net loss attributable to common shareholders of Biohaven Pharmaceutical Holding Company Ltd.
$(209,072)$(264,968)
Net loss per share attributable to common shareholders of Biohaven Pharmaceutical Holding Company Ltd. — basic and diluted
$(2.97)$(4.27)
Weighted average common shares outstanding—basic and diluted70,332,274 62,040,715 
Comprehensive loss:
Net loss$(116,897)$(265,328)
Other comprehensive (loss) income, net of tax(2,325)95 
Comprehensive loss(119,222)(265,233)
Less: comprehensive loss attributable to non-controlling interests498 360 
Comprehensive loss attributable to Biohaven Pharmaceutical Holding Company Ltd.
$(118,724)$(264,873)
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 Three Months Ended March 31,
 20222021
Cash flows from operating activities:
Net loss$(116,897)$(265,328)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash share-based compensation expense81,828 48,726 
Interest expense on mandatorily redeemable preferred shares7,917 7,943 
Interest expense on liability related to sale of future royalties17,314 13,508 
Deferred interest paid-in-kind on long-term debt6,450 2,795 
Issuance of common shares as payment for license agreement1,779 4,243 
Change in fair value of derivatives(3,604)210 
Gain from equity method investment
 (5,261)
Depreciation and amortization4,402 5,054 
Change in obligation to perform R&D services(6,942) 
Other non-cash items(646)461 
Changes in operating assets and liabilities:
Trade receivable, net
(20,073)(36,658)
Inventory
(23,397)(17,566)
Prepaid expenses, other current assets, and other assets(24,954)(25,619)
Accounts payable4,518 13,903 
Accrued expenses, other current liabilities, and other liabilities48,661 47,915 
Net cash used in operating activities$(23,644)$(205,674)
Cash flows from investing activities:
Purchases of marketable securities(246,816) 
Sales of marketable securities 113,441 
Maturities of marketable securities3,058 7,515 
Purchases of property and equipment(512)(1,187)
Net cash (used in) provided by investing activities
$(244,270)$119,769 
Cash flows from financing activities:
Proceeds from issuance of common shares252,000 308,743 
Proceeds from obligation to perform R&D services 100,000 
Proceeds from the issuance of series B preferred shares14,579 17,585 
Proceeds from exercise of share options
2,803 1,382 
Payments for term loan, finance leases, and other(1,391)(6,695)
Net cash provided by financing activities$267,991 $421,015 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(46)14 
Net increase in cash, cash equivalents and restricted cash
31 335,124 
Cash, cash equivalents and restricted cash at beginning of period174,343 134,231 
Cash, cash equivalents and restricted cash at end of period$174,374 $469,355 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)

1.   Nature of the Business and Basis of Presentation
Biohaven Pharmaceutical Holding Company Ltd. (“we,” “us," "our," "Biohaven" or the “Company”) was incorporated in Tortola, British Virgin Islands in September 2013. We are a biopharmaceutical company with a portfolio of innovative product candidates targeting neurological diseases, including rare disorders. The Company's lead product, NURTEC® ODT (rimegepant), was approved by the U.S. Food and Drug Administration ("FDA") in February 2020, for the acute treatment of migraine and was approved for the preventive treatment of migraine in May 2021. NURTEC ODT is the first and only calcitonin gene-related peptide ("CGRP") receptor antagonist available in a quick-dissolve orally dissolving tablet ("ODT") formulation that is approved by the FDA for both the acute and preventive treatment of migraine in adults. Our Neuroinnovation portfolio includes product candidates based on multiple mechanisms — CGRP receptor antagonists, glutamate modulators, myeloperoxidase inhibition, Kv7 ion channel activators ("Kv7"), and Myostatin inhibition — which we believe have the potential to significantly alter existing treatment approaches across a diverse set of neurological indications with high unmet need in both large and orphan indications.
On November 9, 2021, the Company entered into a strategic commercialization arrangement with Pfizer Inc. ("Pfizer"), including a collaboration and license agreement and a related sublicense agreement (the "Pfizer Collaboration"), pursuant to which Pfizer would commercialize product candidates containing the Company's proprietary compounds rimegepant (BHV-3000) and gains rights to zavegepant (BHV-3500) (the "Licensed Products") in all countries worldwide outside of the United States (the "Territory"). The Pfizer Collaboration became effective on January 4, 2022. Refer to Note 13, "Collaboration, License and Other Agreements" for further details.
The Company is subject to risks and uncertainties common to companies in the biopharmaceutical industry, including, but not limited to, the risks associated with developing product candidates at each stage of non-clinical and clinical development; the challenges associated with gaining regulatory approval of such product candidates; the risks associated with commercializing pharmaceutical products for marketing and sale; the potential for development by third parties of new technological innovations that may compete with the Company’s products; the dependence on key
personnel; the challenges of protecting proprietary technology; the need to comply with government regulations; the high costs of drug development; and the uncertainty of being able to secure additional capital when needed to fund operations.
The Company has incurred recurring losses since its inception, had an accumulated deficit as of March 31, 2022, and expects to continue to generate operating losses during the continued global commercial launch of rimegepant. Prior to the commercial launch of rimegepant the Company has primarily raised funds through sales of equity in private placements and public offerings, sale of revenue participation rights related to potential future royalties, and debt financings.
As of May 10, 2022, the issuance date of our condensed consolidated financial statements, the Company expects that its cash, cash equivalents and marketable securities as of March 31, 2022, our future operating cash flows from sales of NURTEC ODT, the funds available from the Sixth Street Financing Agreement, Series B Preferred Shares receipts, product sales and other proceeds from our Pfizer Collaboration will be sufficient to fund its current forecast for operating expenses, including commercialization of NURTEC ODT, financial commitments and other cash requirements for more than one year. The Company may need to raise additional capital to execute its business plans and growth strategy until it is profitable. If no additional capital is raised through either public or private equity financings, debt financings, strategic relationships, alliances and licensing agreements, or a combination thereof, the Company may delay, limit or reduce discretionary spending in areas related to research and development activities and other general and administrative expenses in order to fund its operating costs and working capital needs.
2.   Summary of Significant Accounting Policies
Our significant accounting policies are described in Note 2 of the notes to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Updates to our accounting policies, including impacts from the adoption of new accounting standards, are discussed below in this Note 2.
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared in accordance
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
2.   Summary of Significant Accounting Policies (Continued)


with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its controlled subsidiaries after elimination of all significant intercompany accounts and transactions. Investments in companies in which the Company owns less than a 50% equity interest and where it exercises significant influence over the operating and financial policies of the investee are accounted for using the equity method of accounting.
The financial statements of our subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars using period-end exchange rates for assets and liabilities, historical exchange rates for shareholders' equity (deficit) and weighted average exchange rates for operating results. Translation gains and losses are included in accumulated other comprehensive income, net of tax, in shareholders' deficit. Foreign currency transaction gains and losses are included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.
Reclassifications
Certain items in the prior period’s condensed consolidated financial statements have been reclassified to conform to the current presentation.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, interest expense on liability related to sale of future royalties, valuation of Series B preferred shares forward contracts and income taxes. In addition, management’s assessment of the Company’s ability to continue as a going concern involves the estimation of the amount and timing of future cash inflows and outflows. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
Unaudited Interim Condensed Consolidated Financial Information
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2022 and the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, any other interim periods or any future year or period.  The financial information included herein should be read in conjunction with the financial statements and notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.
Revenue Recognition - Collaboration and Other Revenue
The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, within the scope of ASC 606, Revenue from Contracts with Customers
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
2.   Summary of Significant Accounting Policies (Continued)


("ASC 606"). For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. The accounting treatment pursuant to ASC 606 is outlined below.
The terms of licensing and collaboration agreements entered into typically include payment of one or more of the following: non-refundable, up-front license fees; development, regulatory and commercial milestone payments; payments for manufacturing supply and research and development services and royalties on net sales of licensed products. Each of these payments results in collaboration and other revenue, except for revenues related to manufacturing supply services, which are classified as product revenue. The core principle of ASC 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services.
In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under each of its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.
Amounts received prior to recognizing revenue are recorded as contract liabilities in the Company’s condensed consolidated balance sheets.
At contract inception, the Company assesses the goods or services promised in a contract with a customer and identifies those distinct goods and services that represent a performance obligation. A promised good or service may not be identified as a performance obligation if it is immaterial in the context of the contract with the customer, if it is not separately identifiable from other promises in the contract (either because it is not capable of being separated or because it is not separable in the context of the contract), or if the promised good or service does not provide the customer with a material right.
The Company considers the terms of the contract to determine the transaction price. The transaction price
is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration will only be included in the transaction price when it is not considered constrained, which is when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.
If it is determined that multiple performance obligations exist, the transaction price is allocated at the inception of the agreement to all identified performance obligations based on the relative standalone selling prices ("SSP"). The relative SSP for each deliverable is estimated using external sourced evidence if it is available. If external sourced evidence is not available, the Company uses its best estimate of the SSP for the deliverable.
Revenue is recognized when, or as, the Company satisfies a performance obligation by transferring a promised good or service to a customer. An asset is transferred when, or as, the customer obtains control of that asset, which for a service is considered to be as the services are received and used. The Company recognizes revenue over time by measuring the progress toward complete satisfaction of the relevant performance obligation using an appropriate input or output method based on the nature of the service promised to the customer.
After contract inception, the transaction price is reassessed at every period end and updated for changes such as resolution of uncertain events. Any change in the transaction price is allocated to the performance obligations on the same basis as at contract inception, or to a single performance obligation as applicable.
Management may be required to exercise considerable judgment in estimating revenue to be recognized. Judgment is required in identifying performance obligations, estimating the transaction price, estimating the SSP of identified performance obligations, which may include forecasted revenue, development timelines, estimated future costs, discount rates and probabilities of technical and regulatory success, and estimating the progress towards satisfaction of performance obligations.
Recently Adopted Accounting Pronouncements
Effective January 1, 2022 the Company adopted ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
2.   Summary of Significant Accounting Policies (Continued)


Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update addresses issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. The adoption of ASU 2020-06 did not have a material effect on the Company's consolidated financial statements.
Effective January 1, 2022 the Company adopted ASU No. 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force), which provides guidance on modifications or exchanges of a freestanding equity-classified written call option that is not within the scope of another topic. An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument, and provides further guidance on measuring the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity
classified after modification or exchange. ASU 2021-04 also provides guidance on the recognition of the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration. The guidance has been applied prospectively and did not have a material effect on the consolidated financial statements of the Company.
Future Adoption of New Accounting Pronouncements
In January 2021 the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, providing temporary guidance to ease the burden in accounting for reference rate reform primarily resulting from the discontinuation of LIBOR, which is currently expected to occur in mid-2023 for legacy contracts. The amendments in ASU 2021-01 are elective immediately and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The Company does not expect that the adoption of ASU 2021-01 will have a material effect on its consolidated financial statements.
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
3. Marketable Securities
The amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of debt securities available-for-sale by type of security at March 31, 2022 and December 31, 2021 was as follows:
Amortized CostAllowance for Credit LossesNet Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
March 31, 2022
Corporate bonds
U.S.$290,201 $ $290,201 $2 $(1,969)$288,234 
Foreign47,106  47,106  (426)46,680 
Government related obligations
U.S.98,707  98,707 1 (212)98,496 
Total $436,014 $ $436,014 $3 $(2,607)$433,410 
December 31, 2021
Corporate bonds
U.S.$130,388 $ $130,388 $1 $(234)$130,155 
Foreign20,643  20,643  (82)20,561 
Government related obligations
U.S.41,939  41,939  (8)41,931 
Total$192,971 $ $192,971 $1 $(324)$192,648 
The Company had 99 and 53 available-for-sale debt securities in an unrealized loss position, with an aggregate fair value of $412,366 and $185,296, as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, the Company did not intend to sell these securities, and did not believe it was more likely than not that it would be required to sell these securities prior to the anticipated recovery of their amortized cost basis. We did not have any investments in a continuous unrealized loss position for more than twelve months as of March 31, 2022 and December 31, 2021.
The net amortized cost and fair value of debt securities available-for-sale at March 31, 2022 and December 31, 2021 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity. The fair values of available for sale debt securities are classified as marketable securities in the condensed consolidated balance sheets at March 31, 2022 and December 31, 2021.
March 31, 2022December 31, 2021
Net Amortized CostFair ValueNet Amortized CostFair Value
Due to mature:
Less than one year$342,502 $341,069 $155,359 $155,226 
One year through five years93,512 92,341 37,612 37,422 
Total$436,014 $433,410 $192,971 $192,648 
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
3.  Marketable Securities (Continued)

Net Investment Income
Sources of net investment income included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2022 and 2021 were as follows:
Three Months Ended March 31,
20222021
Gross investment income from debt securities available-for-sale$140 $72 
Investment expenses(18)(52)
Net investment income (excluding net realized capital gains or losses)122 20 
Net realized capital (losses) gains
(3)19 
Net investment income$119 $39 
We utilize the specific identification method in computing realized gains and losses. The proceeds from the sale of available-for-sale debt securities and the related gross realized capital gains and losses for the three months ended March 31, 2022 and 2021 were the following:
Three Months Ended March 31,
20222021
Proceeds from sales$ $113,441 
Gross realized capital gains 19 
Gross realized capital losses$  
4.   Fair Value of Financial Assets and Liabilities
The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires certain assets and liabilities to be reflected at their fair value and others to be reflected on another basis, such as an adjusted historical cost basis. In this note, the Company provides details on the fair value of financial assets and liabilities and how it determines those fair values.
Financial Instruments Measured at Fair Value on the Condensed Consolidated Balance Sheets
Certain assets of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
Level 3 — Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see (Note 4) “Fair Value of Financial Assets and Liabilities” in the 2021 Form 10-K. Financial assets and liabilities measured at fair value on a recurring basis on the condensed consolidated balance sheets at March 31, 2022 and December 31, 2021 were as follows:
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
4.   Fair Value of Financial Assets and Liabilities (Continued)
Fair Value Measurement Using:
Balance Sheet ClassificationType of InstrumentLevel 1Level 2Level 3Total
March 31, 2022
Assets:
Cash equivalentsMoney market funds$45,999 $ $ $45,999 
Cash equivalentsU.S. treasury bills 8,497  8,497 
Marketable securitiesU.S. treasury bills5,992 92,504  98,496 
Marketable securitiesU.S. corporate bonds 288,234  288,234 
Marketable securitiesForeign corporate bonds 46,680  46,680 
Total assets$51,991 $435,915 $ $487,906 
Liabilities:
Series B preferred shares forward contracts$ $ $9,120 $9,120 
Total liabilities$ $ $9,120 $9,120 
December 31, 2021
Assets:
Cash equivalentsMoney market funds$32,420 $ $ $32,420 
Marketable securitiesU.S. treasury bills5,994 35,937  41,931 
Marketable securitiesU.S. corporate bonds 130,155  130,155 
Marketable securitiesForeign corporate bonds 20,561  20,561 
Total assets$38,414 $186,653 $ $225,067 
Liabilities:
Series B preferred shares forward contracts$ $ $13,110 $13,110 
Total liabilities$ $ $13,110 $13,110 
There were no securities transferred between Level 1, 2 and 3 during the three months ended March 31, 2022 or 2021.
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BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
4.   Fair Value of Financial Assets and Liabilities (Continued)

Series B Preferred Shares Forward Contracts
The following tables provide roll forwards of the aggregate fair value of the Company's Series B Preferred Shares Forward Contracts for which fair value is determined by Level 3 inputs for the three months ended March 31, 2022 and 2021:
Carrying Value
Balance at December 31, 2021$13,110 
Change in fair value of derivative liability(3,604)
Partial settlement of derivative liability(386)
Balance at March 31, 2022$9,120 
Balance at December 31, 2020$14,190 
Change in fair value of derivative liability835 
Partial settlement of derivative liability(625)
Balance at March 31, 2021$14,400 
Contingent Value Right Liability
On January 4, 2021, the Company acquired Kleo Pharmaceuticals, Inc. (“Kleo”) (see Note 6). Included in the purchase consideration transferred was a contingent value right to receive one dollar in cash for each Kleo share if certain specified Kleo biopharmaceutical products or product candidates receive the approval of the FDA prior to the expiration of 30 months following the effective time of the transaction. The maximum amount payable pursuant to the contingent value right is approximately $17,300, and the fair value of the contingent value right was $1,457 as of the acquisition date. The Company recorded the contingent value right in other long-term liabilities on the condensed consolidated balance sheets.
The fair value of the contingent value right was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company used a discounted cash flow approach to value the contingent value right liability. As inputs into the valuation, the Company considered the probability of FDA approval within the 30 month period, which we estimated at approximately 10%, the amount of the payment, and a discount rate of approximately 7% determined using an implied credit spread adjusted based on companies with similar credit risk.
At December 31, 2021, the Company determined the value of the contingent value right to be immaterial and recognized a gain of $1,457 related to the contingent value right in other income (expense) during the fourth quarter of 2021.
5. Balance Sheet Components
Restricted Cash
Restricted cash included in other current assets in the condensed consolidated balance sheets is primarily employee contributions to the Company's employee share purchase plan held for future purchases of the Company's outstanding shares.
Restricted cash included in other assets in the condensed consolidated balance sheets represents collateral held by a bank for a letter of credit ("LOC") issued in connection with the leased office space in Yardley, Pennsylvania. The following represents a reconciliation of cash and cash equivalents in the condensed consolidated balance sheets to total cash, cash equivalents and restricted cash as of March 31, 2022 and December 31, 2021, respectively, in the condensed consolidated statements of cash flows:
March 31, 2022December 31, 2021
Cash and cash equivalents$169,065 $171,945 
Restricted cash (included in other current assets)4,559 1,648 
Restricted cash (included in other assets)750 750 
Cash, cash equivalents and restricted cash in the statements of cash flows$174,374 $174,343 
Trade Receivable, Net
The Company’s trade accounts receivable consists of amounts due primarily from pharmacy wholesalers in the U.S. (collectively, its "Customers") related to sales of NURTEC ODT and have standard payment terms. For certain Customers, the trade accounts receivable for the Customer is net of distribution service fees, prompt pay discounts and other adjustments. The Company monitors the financial performance and creditworthiness of its Customers so that it can properly assess and respond to changes in their credit profile. The Company reserves against trade accounts receivable for estimated losses that may arise from a Customer’s inability to pay and any amounts determined to be uncollectible are written off against the reserve when it is probable that the receivable will not be collected. The allowance for doubtful accounts,
12


BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
5. Balance Sheet Components (Continued)
including reserve amounts for estimated credit losses, was immaterial as of March 31, 2022 and December 31, 2021.
Inventory
Inventory consisted of the following:
As of March 31, 2022As of December 31, 2021
Work-in-process169,390 159,075 
Finished goods13,731 9,269 
Total inventories$183,121 $168,344 
Less noncurrent inventories(1)
91,840 87,736 
Total inventories classified as current$91,281 $80,608 
(1) Included in other assets on the condensed consolidated balance sheets. There are no recoverability issues for these amounts.
Prepaid Expenses
Prepaid expenses consisted of the following:
As of March 31, 2022As of December 31, 2021
Prepaid clinical trial costs$58,562 $42,578 
Prepaid manufacturing8,856 17,448 
Prepaid commercial costs33,248 15,732 
Other prepaid expenses4,225 13,080 
 Prepaid expenses$104,891 $88,838 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
As of March 31, 2022As of December 31, 2021
Accrued development milestones$5,000 $5,000 
Accrued employee compensation and benefits35,362 40,109 
Accrued clinical trial costs36,051 37,477 
Accrued commercialization and other professional fees22,744 19,994 
Accrued sales discounts and allowances233,096 203,760 
Current obligation to perform R&D services29,642 22,030 
Other accrued expenses and other current liabilities95,517 91,649 
 Accrued expenses and other current liabilities$457,412 $420,019 
6.   Business Acquisition
On January 4, 2021, the Company acquired Kleo Pharmaceuticals, Inc. (“Kleo”). Kleo is a development-stage biopharmaceutical company focused on advancing the field of immunotherapy by developing small molecules that emulate biologics. The transaction was accounted for as the acquisition of a business using the acquisition method of accounting.
The total fair value of the consideration transferred was $20,043 which primarily consisted of the issuance of a total of 115,836 common shares of the Company to Kleo stockholders and contingent consideration in the form of a contingent value right to receive one dollar in cash for each Kleo share if certain specified Kleo biopharmaceutical products or product candidates receive the approval of the FDA prior to the expiration of 30 months following the effective time of the transaction. The maximum amount payable pursuant to the contingent value right was approximately $17,300. At December 31, 2021, the Company determined the value of the contingent value right to be immaterial and recognized a gain of $1,457 related to the contingent value right in other income (expense) during the fourth quarter of 2021. The value of the contingent value right continues to be immaterial with no value included on the condensed consolidated balance sheet as of March 31, 2022.
13


BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
6.   Business Acquisition (Continued)


Prior to the consummation of the transaction, the Company owned approximately 41.9% of the outstanding shares of Kleo and accounted for it as an equity method investment. As part of the transaction, the Company acquired the remainder of the shares of Kleo, and post-transaction the Company owns 100% of the outstanding shares of Kleo. The carrying value of the Company’s investment in Kleo was $1,176 immediately prior to the acquisition date. The Company determined the fair value of the existing interest was $6,437, and recognized a gain from our equity method investment during the first quarter of 2021 of $5,261 on the condensed consolidated statements of operations and comprehensive loss as a result of remeasuring to fair value the existing equity interest in Kleo.
In connection with the transaction, we recorded: net working capital of $573; property, plant and equipment of $1,257; intangible assets consisting of in progress research and development assets of $18,400 which include an oncology therapeutic candidate entering Phase I clinical trials and a COVID-19 therapeutic candidate in the planning stage for clinical development; debt assumed of $1,577; and goodwill of $1,390.
Kleo’s employees, other than its President and Chief Financial Officer, were retained as part of the transaction. In connection with the transaction agreement, the Company filed a registration statement permitting Kleo stockholders to offer and sell the common shares of the Company issued in the transaction.
7.   Liability Related to Sale of Future Royalties, net
2018 RPI Funding Agreement
In June 2018, the Company entered into a funding agreement (the "2018 RPI Funding Agreement") to sell tiered, sales-based royalty rights on global net sales of pharmaceutical products containing the compounds rimegepant or zavegepant (previously known as BHV-3500 and vazegepant) and certain derivative compounds thereof ("Products") to RPI, a Delaware statutory trust. The Company issued to RPI the right to receive certain revenue participation payments, subject to certain reductions, based on the future global net sales of the Products for each calendar quarter during the royalty term contemplated by the 2018 RPI Funding Agreement, in exchange for $100,000 in cash. Specifically, the participation rate commences at 2.1% on annual global net sales of up to and equal to $1,500,000, declining to 1.5% on annual global net sales exceeding $1,500,000. Pursuant to the Pfizer Collaboration, Pfizer will compensate Biohaven for the
related royalties on net sales outside of the U.S. owed to RPI under the 2018 RPI Funding Agreement
Concurrent with the 2018 RPI Funding Agreement, the Company entered into a common stock purchase agreement (the "Purchase Agreement") with RPI. Pursuant to the Purchase Agreement, the Company sold 1,111,111 common shares of the Company to RPI at a price of $45.00 per share, for gross proceeds of $50,000.
The Company concluded that there were two units of account for the consideration received comprised of the liability related to sale of future royalties and the common shares. The Company allocated the $100,000 from the 2018 RPI Funding Agreement and $50,000 from the Purchase Agreement among the two units of account on a relative fair value basis at the time of the transaction. The Company allocated $106,047 in transaction consideration to the liability, and $43,953 to the common shares. The Company determined the fair value of the common shares based on the closing share price on the transaction date, adjusted for the trading restrictions. The transaction costs of $377 were allocated in proportion to the allocation of total consideration to the two units of account. The effective interest rate under the 2018 RPI Funding Agreement, including transaction costs, is approximately 27% as of March 31, 2022.
2020 RPI Funding Agreement
In August 2020, the Company entered into a funding agreement with RPI 2019 Intermediate Finance Trust (“RPI 2019 IFT”) providing for up to $250,000 of funding in exchange for rights to participation payments based on global net sales of products containing zavegepant and rimegepant and certain payments based on success-based milestones relating to zavegepant (the "2020 RPI Funding Agreement"). Under the 2020 RPI Funding Agreement, RPI 2019 IFT will be entitled to receive tiered, sales based participation rights up to 3.0% of future global net sales of products containing zavegepant, 0.4% of future global net sales of products containing rimegepant, and payments tied to success-based milestones as described below. Pursuant to the Pfizer Collaboration, Pfizer will compensate Biohaven for the related royalties on net sales outside of the U.S. owed to RPI under the 2020 RPI Funding Agreement. The Company received $150,000 in cash at closing in 2020 and $100,000 in cash upon achievement of the commencement of the oral zavegepant Phase 3 program in March 2021.
The success-based milestone payments range from 0.6x to 2.95x of the funded amount depending on the number of regulatory approvals achieved for
14


BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
7.   Liability Related to Sale of Future Royalties, net (Continued)
zavegepant (including 1.9x for the first zavegepant migraine regulatory approval) and would be paid over a 10-year period. If the Company consummates a Change of Control, RPI 2019 IFT has the option to accelerate each unpaid milestone payment which has or thereafter occurs.
The Company concluded that there were two units of account for the $150,000 in initial consideration received, which comprised of a liability related to sale of future royalties for products containing rimegepant and a research and development arrangement with RPI 2019 IFT for zavegepant. The Company allocated the $150,000 from the 2020 RPI Funding Agreement among the two units of account based on the present value of probability adjusted net sales at the time of the transaction. The Company allocated $147,876 in transaction consideration to the liability related to sale of future royalties and $2,124 to the obligation to perform R&D services liability in the condensed consolidated balance sheets. The transaction costs of $400 were allocated to the liability related to sale of future royalties. The effective interest rate under the 2020 RPI Funding Agreement, including transaction costs, is approximately 8% as of March 31, 2022.
In March 2021, the Company received $100,000 from RPI 2019 IFT, pursuant to the 2020 RPI Funding Agreement, for the commencement of the oral zavegepant Phase 3 clinical program. The Company allocated the proceeds to obligation to perform R&D services liability in the condensed consolidated balance sheets.
Since there is a substantive and genuine transfer of risk to RPI 2019 IFT for the development of zavegepant, the $102,124 of consideration allocated to the development of zavegepant is being recognized by the Company as an obligation to perform contractual services and therefore is a reduction of research and development expenses as incurred.
The following table shows the activity within the obligation to perform R&D services account for the three months ended March 31, 2022 and 2021, related to the 2020 RPI Funding Agreement.
Three Months Ended March 31,
20222021
Reduction to research and development expenses$6,943 190
The following table shows the activity within the liability related to sales of future royalties account for
the three months ended March 31, 2022 and 2021, related to the 2018 and 2020 RPI Funding Agreements.
Three Months Ended March 31,
20222021
Liability related to sale of future royalties - beginning balance
$384,283 $335,282 
Royalty revenues paid and payable to RPI(3,090)(1,096)
Interest expense on liability related to sale of future royalties17,314 13,508 
Liability related to sale of future royalties - ending balance
$398,507 $347,694 
8.   Mandatorily Redeemable Preferred Shares, net
RPI Series A Preferred Shares
In April 2019, the Company sold 2,495 Series A Preferred Shares (the "Series A Preferred Shares") to RPI at a price of $50,100 per preferred share pursuant to a Series A preferred share purchase agreement (the "Preferred Share Agreement"). The gross proceeds from the transaction with RPI were $125,000, with $105,000 of the proceeds used to purchase a priority review voucher ("PRV") issued by the United States Secretary of Health and Human Services to potentially expedite the regulatory review of the new drug application ("NDA") for the ODT formulation of rimegepant and the remainder of the proceeds to be used for other general corporate purposes.
The holders of the Company's outstanding Series A Preferred Shares will have the right to require redemption of the shares in certain circumstances. If a Change of Control, as defined in the Company's memorandum and article of association, occurs and the Series A Preferred Shares have not previously been redeemed, the Company must redeem the Series A Preferred Shares for two times (2x) the original purchase price of the Series A Preferred Shares payable in a lump sum at the closing of the Change of Control or in equal quarterly installments following the closing of the Change of Control through December 31, 2024.
The Company may redeem the Series A Preferred Shares at its option at any time for two times (2x) the original purchase price, which redemption price may be paid in a lump sum or in equal quarterly installments through December 31, 2024.
In the event that the Company defaults on any obligation to redeem Series A Preferred Shares when
15


BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
8.   Mandatorily Redeemable Preferred Shares, net (Continued)
required, the redemption amount shall accrue interest at the rate of eighteen percent (18%) per annum. If any such default continues for at least one year, the holders of such shares shall be entitled to convert, subject to certain limitations, such Series A Preferred Shares into common shares, with no waiver of their redemption rights.
The Company is required to redeem the Series A Preferred Shares for two times (2x) the original purchase price, payable beginning March 31, 2021 in equal quarterly installments through December 31, 2024. Accordingly, the Company has concluded the Series A Preferred Shares are mandatorily redeemable instruments and classified as a liability. The Company initially measured the liability at fair value, and will subsequently accrete the carrying value to the redemption value through interest expense using the effective interest rate method. The effective interest rate under the Preferred Share Agreement, including transaction costs, was determined to be approximately 20% as of March 31, 2022. The Company recognized $6,463 and $7,943 in interest expense for the three months ended March 31, 2022 and 2021, respectively. The Company had 1,715 and 1,871 Series A preferred shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.
The following table shows the activity within the Series A preferred share liability for the three months ended March 31, 2022 and 2021, respectively:
Carrying Value
Gross balance at December 31, 2021$141,740 
Interest expense recognized, excluding transaction cost amortization6,452 
Redemption of Series A preferred shares(15,625)
Gross balance at March 31, 2022$132,567 
Less: unamortized transaction costs(120)
Net balance at March 31, 2022$132,447 
Gross balance at December 31, 2020$174,264 
Interest expense recognized, including transaction cost amortization7,932 
Redemption of Series A preferred shares(15,625)
Gross balance at March 31, 2021$166,571 
Less: unamortized transaction costs(162)
Net balance at March 31, 2021$166,409 
RPI Series B Preferred Shares
On August 7, 2020, the Company entered into the RPI Series B Preferred Share Agreement, pursuant to which RPI agreed to invest in the Company through the purchase of up to 3,992 Series B Preferred Shares at a price of $50,100 per share. The shares will be issued in quarterly increments from March 31, 2021 to December 31, 2024. Upon issuance of the Series B Preferred Shares, they qualify as mandatorily redeemable instruments and are classified as a mandatorily redeemable preferred shares liability on the condensed consolidated balance sheet. The Company measures the liability at fair value, and subsequently accretes the carrying value to the redemption value through interest expense using the effective interest rate method. The effective interest rate under the Series B Preferred Share Agreement was determined to be approximately 8.7% as of March 31, 2022. The Company recognized $1,454 in interest expense for the three months ended March 31, 2022 and no interest expense for the three months ended March 31, 2021. The Company had 1,697 and 1,406 Series B preferred shares issued and outstanding, as of March 31, 2022 and December 31, 2021, respectively.
The following table shows the activity within the Series B preferred share liability for the three months ended March 31, 2022 and 2021, respectively:
Carrying Value
Balance at December 31, 2021$76,627 
Interest expense recognized1,454 
Issuance of Series B preferred shares at fair value14,966 
Balance at March 31, 2022$93,047 
Balance at December 31, 2020$ 
Issuance of Series B preferred shares at fair value18,210 
Balance at March 31, 2021$18,210 
16


BIOHAVEN PHARMACEUTICAL HOLDING COMPANY LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except share and per share amounts)
(Unaudited)

9.   Shareholders' Deficit
Changes in shareholders’ deficit for the three months ended March 31, 2022 were as follows:
Common Shares
SharesAmountAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive IncomeBiohaven Shareholders' Equity (Deficit)Non-controlling InterestsTotal Shareholders' Equity (Deficit)
Balances as of December 31, 202166,933,531 $1,676,792 $169,656 $(2,585,755)$(73)$(739,380)$(3,629)$(743,009)
Repurchase of preferred shares in consolidated subsidiary1,232,629 152,673 (92,673)60,000 60,000 
Issuance of common shares as payment for agreements2,037,921 253,779 253,779 253,779 
Issuance of common shares under equity incentive plan336,721 29,442 (30,193)(751)(751)
Non-cash share-based compensation expense82,790 82,790 82,790 
Net loss(116,399)(116,399)(498)(116,897)
Other comprehensive loss(2,325)(2,325)(2,325)
Balances as of March 31, 202270,540,802 $2,112,686 $129,580 $(2,702,154)$(2,398)$(462,286)$(4,127)$(466,413)
Changes in shareholders’ equity (deficit) for the three months ended March 31, 2021 were as follows:
Common Shares
SharesAmountAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive IncomeBiohaven Shareholders' Equity (Deficit)Non-controlling InterestsTotal Shareholders' Equity (Deficit)
Balance as of December 31, 202060,436,876 $1,249,547 $98,938 $(1,739,169)$314 $(390,370)$(1,819)$(392,189)
Issuance of common shares, net of offering costs4,037,204 308,243 — — — 308,243 — 308,243 
Issuance of common shares as part of acquisition115,836 10,673 — — — 10,673 — 10,673 
Issuance of common shares as payment for license agreements110,998 10,243 — — — 10,243 — 10,243 
Issuance of common shares under equity incentive plan365,554 25,315 (23,933)— — 1,382 — 1,382 
Non-cash share-based compensation expense— — 48,726 — — 48,726 — 48,726 
Net loss— — — (264,968)— (264,968)(360)(265,328)
Other comprehensive income— — — — 95