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Through the deal, Pfizer (NYSE:PFE) will gain access to Biohaven’s approved drug Rimegepant that belong to a class of migraine drugs known as calcitonin gene-related peptide (CGRP) inhibitors.
Pfizer built a cash pile on the back of success with its COVID-19 vaccine and oral drug Paxlovid, with some investors expecting it to spend on deals as it faces the loss of patent protection for key drugs in the next few years.
Last year, the company decided to buy Canadian drug developer Trillium Therapeutics (NASDAQ:TRIL) Inc in a $2.26 billion deal, followed by a $6.7 billion deal for drug developer Arena Pharmaceuticals Inc.
Pfizer said it will acquire all the outstanding shares of Biohaven that it does not already own for $148.50 per share in cash, a 78.6% premium to Biohaven’s last closing price. Pfizer has a 2.6% stake in the company.
Biohaven’s shares jumped 71.2% to $142.31 before the bell, while Pfizer shares fell 1.3% to $47.99.
Rimegepant, marketed as Nurtec ODT in the United States, was approved in 2020 to treat acute migraine attacks and it won expanded approval for the prevention of migraine episodes in May last year. The treatment brought in sales of $462.5 million in 2021.
Biohaven shareholders, including Pfizer, will also get 0.5 of a share of a new publicly traded company that will retain Biohaven’s non-CGRP treatments that are in development stage.
