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Pfizer To Acquire Migraine Drugmaker Biohaven For $11.6 Billion


10/05/2022


Pfizer To Acquire Migraine Drugmaker Biohaven For $11.6 Billion
Pfizer Inc announced on Tuesday that it will pay $11.6 billion in cash for migraine medicine maker Biohaven Pharmaceutical Holding Company Ltd, as the drugmaker attempts to diversify its portfolio ahead of patent expirations for several cancer drugs.
 
Pfizer will acquire access to Biohaven's approved medicine Rimegepant, which belongs to the calcitonin gene-related peptide (CGRP) inhibitor class of migraine drugs.
 
Pfizer amassed a cash pile as a result of its COVID-19 vaccination and oral medicine Paxlovid's success, and some investors expect it to spend it on acquisitions as it prepares to lose patent protection for crucial drugs in the coming years.
 
Last year, the business spent $2.26 billion to acquire Canadian drug developer Trillium Therapeutics Inc, followed by a $6.7 billion acquisition of drug developer Arena Pharmaceuticals Inc. continue reading
 
Pfizer said it will pay $148.50 per share in cash for all outstanding shares of Biohaven that it does not already own, a 78.6 per cent premium to Biohaven's last closing price. Pfizer owns 2.6 per cent of the business.
 
Before the bell, Biohaven's stock rose 71.2 per cent to $142.31, while Pfizer's stock declined 1.3 per cent to $47.99.
 
Rimegepant, marketed in the US as Nurtec ODT, was approved in 2020 for the treatment of acute migraine attacks, and in May of last year, it received enhanced permission for the prevention of migraine episodes. In 2021, the treatment generated $462.5 million in revenue.
 
Biohaven stockholders, including Pfizer, will also receive 0.5 of a share in a new publicly traded business that will continue to develop Biohaven's non-CGRP medicines.
 
(Source:www.cnbc.com)