DTMT Network

Pfizer Inc. and Biohaven Pharmaceutical jointly announced that both companies have entered into a definitive agreement under which Pfizer will acquire Biohaven, for 11.6 billion dollars to acquire all outstanding shares of Biohaven not already owned by Pfizer.

In a statement released to the media on May 10, 2022, the companies said that the boards of directors of both companies have unanimously approved the transaction.

Under the terms of the agreement, Pfizer will pay $148.50 per share in cash for all outstanding shares of Biohaven not already owned by Pfizer, at a premium of 33% over the weighted average price of 111.70 dollars per share three months before the date of the announcement of the transaction, the statement added.

 It may be recalled that Biohaven is the maker of Nurtec-ODT, a dual-acting migraine therapy approved for both acute treatment and episodic prevention of migraine in adults.

“Today’s announcement builds on our legacy of delivering breakthroughs for patients living with complex pain disorders and diseases that disproportionately impact women,” Nick Lagunowich, the Global President of Pfizer Internal Medicine, said.

“Nurtec®-ODT, which is already the number one prescribed migraine medicine in its class in the United States, coupled with Biohaven’s CGRP pipeline, offers hope for patients suffering from migraine worldwide,” he added.

“We believe Pfizer is uniquely positioned to help the portfolio reach its full potential given our leading scale and capabilities, including comprehensive field force engagement with primary care physicians, specialists and health systems delivering the right information at the right time,” he further added.

The companies informed that the current agreement follows the November 9, 2021 collaboration agreement for the commercialisation of rimegepant and zavegepant outside the United States, in connection with which Pfizer invested $350 million to acquire 2.6% of Biohaven’s common stock at $173 per share.

 “We are excited to announce Pfizer’s proposed acquisition of Biohaven, recognising the market leadership of Nurtec-ODT, our breakthrough all in one migraine therapy, and the untapped potential of our CGRP franchise,” Dr Vlad Coric, Chairman and Chief Executive Officer of Biohaven said.

“Pfizer’s capabilities will accelerate our mission to deliver our migraine medicines to even more patients, while the new R&D company is well-positioned to bring value to patients and shareholders by focusing on our innovative pipeline for neurological and other disorders,” he added.

The companies further informed that, following the closing, New Biohaven will continue to operate under the Biohaven name and will be led by Dr Coric, as Chairman and CEO, and include other members of the current management team of Biohaven.

The new company will also have the right to receive tiered royalties from Pfizer on any annual net sales of rimegepant and zavegepant in the United States over $5.25 billion.