Pfizer to expand into migraine space with USD 11.6 Bn Biohaven buyout

Pfizer Inc. is reportedly planning to acquire Biohaven Pharmaceutical Holding Co. for USD 11.6 billion in cash to obtain an approved drug ‘Nurtec ODT’ for treating migraine in adults. The move will allow the American biotechnology giant to expand its reach into the migraine treatment market.

Pfizer will acquire Biohaven’s outstanding stock at USD 148.50 per share in the New Biohaven, a new public limited company that will develop and retain some compounds which don’t use the anti-migraine technology known as CGRP.

It is worth noting that Pfizer earned billions from sales of COVID-19 inoculation and treatment as well as has the resources to diversify in other products which might have limited demand till the outbreak declines.

The pharmaceutical giant is in line to obtain the drug Rimegepant sold under the brand name Nurtec ODT in the U.S., Vydura in Europe, and zavegepant, an intranasal spray for acute migraine treatment submitted to the U.S. regulators.

Pfizer claimed that global sales for Biohaven’s drugstore license account for over USD 6 billion worth per year as well as the company will double its sales representatives for promoting Nurtec ODT, widening its reach to 70,000 additional healthcare practitioners.

The company has invested USD 173 per share to acquire 2.6% of Biohaven’s common stock, totaling it up to USD 350 million as well as is planning to gain other 5 CGRP assets of Biohaven that are currently in the lab studies. The duo has mutually agreed on selling two drugs outside the U.S.

Notably, Pfizer plans on settling third-party debts of Biohaven and will reclaim all outstanding shares of the company’s redeemable preferred stock.

Despite falling over 40%, Biohaven’s shares have soared nearly by 70%. Moreover, Pfizer’s bid price is a third over the stock’s weighted mean sale price of USD 111.70 in the last three months, with the transaction expected to close by early 2023.

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https://www.business-standard.com/article/international/pfizer-to-pay-11-6-bn-for-biohaven-pharmaceutical-to-tap-migraine-market-122051001738_1.html#:~:text=Pfizer%20Inc.%20said%20it%20will,according%20to%20a%20statement%20Tuesday