Pfizer to Acquire Biohaven Pharmaceuticals in $11.6 Billion Deal

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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.

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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?) 🤔

 

Source: Barron’s, CNBC, BusinessWire.

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Luka Marjanovic

Partner

As Partner at Internet Bull Report, Luka brings deep expertise in Capital Markets, Financial Marketing, and Strategic Communications to his work advising clients. He is passionate about exceptional client service and devising transformational strategies that enable unrivaled performance. Luka holds a Bachelor’s in International Business and a Master’s in International Management. Over the years he has worked with organizations across a wide range of industries, playing a lead role in defining and delivering the strategy and direction of new and existing business operations. Prior to his business education, he studied biology-and-biotechnology and served in the Danish Royal Army as Second Sergeant; leading and managing a group under extreme pressure and conditions. Luka has spent significant time abroad, living and working in seven different countries. When he's not in the office, he's chasing the next gusts windsurfing, carving the mountain snowboarding, or out in the forest for a jog.