Pfizer to acquire Biohaven Pharma for $11.6 billion in cash sending Biohaven shares up more than 70%.
The acquisition comes as biotech stocks continue their extraordinary slide. A great time to strike.
Pfizer Inc. (NYSE: $PFE) said Tuesday it will buy migraine drug maker Biohaven Pharmaceutical Holding Company Ltd. (NYSE: $BHVN) for about $11.6 billion in cash, as the drugmaker seeks to beef up its portfolio ahead of patent losses for some cancer drugs.
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.
The deal is Pfizer’s largest in years.
Under the terms of the agreement, Pfizer will acquire all outstanding shares of Biohaven not already owned by Pfizer for $148.50 per share in cash. Pfizer currently has a 2.6% stake in Biohaven.
Through the deal, Pfizer will gain access to Biohaven’s approved drug Rimegepant which belongs to a class of migraine drugs known as calcitonin gene-related peptide (CGRP) inhibitors. A strategic addition to its pipeline.
The deal will also create New Biohaven that will continue to develop the drugs in Biohaven’s current pipeline. That company will be led by Biohaven’s current CEO, Vlad Coric, and other executives on Biohaven’s current management team.
(Biohaven has been one of our top picks since the IPO in 2017 at $17 – Another feather in the cap for our friends Dr. Greg Bailey and Jim Mellon)👏 (Is Portage and Juvenescence next?) 🤔