Pfizer made the announcement in a press release today.
Pfizer will pay $148.5 per Biohaven share. Compared to the company’s last closing stock price, this represents a premium of 78%. Biohaven shareholders will also get a stake in a new publicly-traded company that will retain ownership of Biohaven’s migraine treatment and development-stage drugs. For one of their shares in Biohaven, they will receive half a share in the new company, New Biohaven.
This agreement follows the November 9, 2021 collaboration to commercialize rimegepant and zavegepant outside the United States. It was this collaboration that led to Pfizer acquiring a 2.6% stake and paying approximately $350 million for it. At the time, it was priced at $173 per share.
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Bioaven’s main product is the previously mentioned rimegepant, which is used to treat migraines in adults. It is indicated for acute migraine and the preventive treatment of episodic migraine. Approximately one billion people suffer from migraine worldwide, 75% of whom are women.
Pfizer now has a huge amount of cash thanks to the covid-19 vaccine it is working on with BioNTech. The company expects to complete the transaction by early 2023.
Pfizer’s first-quarter sales rose 77% year-over-year to $25.66 billion, while net income rose 61% to $7.86 billion. First-quarter sales of the covid vaccine topped $13 billion, and sales of the covid treatment antiviral paxlovide topped $1.5 billion.
Biohaven shares rocketed today
Following the news, Biohaven’s stock surged more than 70% to $142 per share. They came close to the price at which the company will be bought out by Pfizer.
What we can expect from this acquisition was summed up quite clearly by Biohaven on its Twitter account.
Today we announced @pfizer will acquire Biohaven for our CGRP franchise, including our all-in-one #migraine therapy. With this deal, Biohaven will establish an independent, neuroscience discovery and development company with our non-CGRP assets. Learn more https://t.co/q2oAasuZhk pic.twitter.com/H9XZdHKVl4
— Biohaven Pharmaceuticals (@BiohavenPharma) May 10, 2022