Pfizer Buys Biohaven For $11.6 Billion, Bags Migraine Asset

After high-profile takeovers of Trillium and Arena in recent years, Pfizer proves that its M&A engine is still going strong. This time, the drug giant is buying Biohaven Pharmaceutical for $11.6 billion in cash, adding Biohaven’s migraine drug, NURTEC® ODT (rimegepant), as well as other compounds, to its Internal Medicine Pipeline. 

The takeover, which has been unanimously approved by the boards of directors of both companies, will see Pfizer snap up all shares of Biohaven for $148.50 per share in cash, totaling to around $11.6 billion. This represents an approximately 33% premium to Biohaven’s volume weighted average selling price of $111.70 over the past three months. 

Biohaven shareholders will also receive 0.5 of a share of New Biohaven, a new public company that will hold on to Biohaven’s pipeline of non-CGRP development stage compounds. 

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Pfizer Acquires Migraine Assets

The acquisition will give Pfizer a portfolio of seven compounds. They include: 

• Rimegepant: Approved in the US (as NURTEC ODT) and the EU (as VYDURA) to treat acute migraine or prevent episodic migraine. 
• Zavegepant: Expected to be accepted for review by the US FDA, based on a March 2022 filing, as an intranasal spray for acute migraine. Also being developed as an oral soft gel for chronic migraine prevention. 
• Five preclinical CRGP assets

“Today’s announcement builds on our legacy of delivering breakthroughs for patients living with complex pain disorders and diseases that disproportionately impact women,” said Nick Lagunowich, Global President of Pfizer Internal Medicine. “NURTEC® ODT, which is already the #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’s interest in Biohaven dates back to last November, when the companies teamed up to market rimegepant and zavegepant outside the US. The collaboration included a $350 million investment from Pfizer to acquire 2.6% of Biohaven’s common stock at $173 per share. 

New Biohaven Sets Off With $275 Million

The new entity, New Biohaven, will be led by Vlad Coric, MD, as Chairman and CEO, as well as Biohaven’s current management team. New Biohaven will continue its operations with $275 million in cash, and is eligible to receive tiered royalties from Pfizer on annual net sales of rimegepant and zavegepant in the US in excess of $5.25 billion. 

The takeover is expected to close by early 2023. 

Author

Joy Lin

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