Drug manufacturer Pfizer has announced plans to acquire Biohaven Pharmaceuticals, a commercial-stage biopharmaceutical company, for a whopping $11.6 billion.
Biohaven is well-known as the maker of Nurtec ODT, a dual-acting migraine therapy approved for both acute treatment and episodic prevention of migraine in adults. Pfizer, which his flush with cash after its successful COVID-19 vaccine, has been looking to acquire new drugs as some patents of its most popular drugs are due to expire soon, according to CNBC.
Under terms of the deal, Pfizer will acquire all outstanding shares not already owned by Pfizer of Biohaven for $148.50 per share in cash––roughly a 33% premium to Biohaven’s recent weighted average stock value. Biohaven shareholders, including Pfizer, will also receive half a share of New Biohaven, a new publicly traded company that will retain Biohaven’s non-CGRP development stage pipeline compounds, per Biohaven common share. The deal has already been approved by the boards of directors of both companies.
Pfizer will acquire Rimegepant (Nurtec), Zavegepant––which is on track to be approved soon an intranasal spray for the acute treatment of migraine and in development as an oral soft gel for chronic migraine prevention––and a portfolio of five pre-clinical CGRP assets.
“Today’s announcement builds on our legacy of delivering breakthroughs for patients living with complex pain disorders and diseases that disproportionately impact women,” Nick Lagunowich, global president of Pfizer Internal Medicine, said in a statement. “Nurtec ODT, which is already the [No. 1] prescribed migraine medicine in its class in the United States, coupled with Biohaven’s CGRP pipeline, offers hope for patients suffering from migraine worldwide.”
Pfizer and Biohaven already have an existing relationship after a collaboration in November 2021 for the commercialization of rimegepant and zavegepant outside the U.S. Pfizer invested $350 million to acquire 2.6% of Biohaven’s common stock at $173 per share.
Upon closing the deal, New Biohaven will continue to operate under the Biohaven name. New Biohaven will be led by Vlad Coric, MD, as chairman and CEO, and other members of the current management team will remain in place. The deal is subject to the completion of the New Biohaven spin-off transaction and other customary closing conditions, including regulatory approvals and shareholder approval. The transaction is expected to close by early 2023.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."