On May 10, Pfizer Inc. and Biohaven Pharmaceutical Holding Company Ltd. announced that they have entered into a definitive agreement under which Pfizer will acquire all outstanding shares of Biohaven not already owned by Pfizer for $148.50 per share in cash, or approximately $11.6 billion. Pfizer had previously taken a 2.6% stake in Biohaven in November 2021 for $173 per share, or approximately $350 million. With this deal, Pfizer will compete in a crowded market for migraine treatments from other large drugmakers such as Eli Lilly and Amgen.
The proposed transaction includes the acquisition of Biohaven’s calcitonin gene-related peptide programs including Rimegepant, which is approved in the United States under the trade name, NURTEC® ODT, and in the European Union under the trade name, VYDURA®, for both the acute treatment of migraine and preventive treatment of episodic migraine; Zavegepant, which is on track for a Q2:22 acceptance in the United States as an intranasal spray for the acute treatment of migraine and in development as an oral soft gel for chronic migraine prevention; and a portfolio of five pre-clinical CGRP assets.
According to the LevinPro HC database, this acquisition marks the 42nd biotechnology deal of 2022, as well as the largest transaction for Pfizer since its $13.54 billion acquisition of cancer drugmaker Medivation, Inc. in 2016. With expected $32 billion in COVID vaccine sales for 2022, Pfizer is flush with cash and looking to add treatments as patents for its top-selling drugs like blood thinner Eliquis, which is nearing expiration. The Biohaven acquisition also comes at a good time, as the company expects sales of its COVID-19 vaccines to fall after last year’s highs.
Biohaven Pharmaceutical Holding Company Limited is a commercial-stage biopharmaceutical company formed under the laws of the British Virgin Islands. Biohaven has a portfolio of innovative, best-in-class therapies to improve the lives of patients with debilitating neurological and neuropsychiatric diseases, including rare disorders.
Pfizer is a global biopharmaceutical company that discovers, develops, manufactures and sells healthcare products worldwide. In 2021, Pfizer generated total revenues of $81.3 billion.
J.P. Morgan acted as Pfizer’s financial advisor for the transaction with Ropes & Gray LLP acting as its legal advisor. Centerview Partners acted as Biohaven’s financial advisor for the transaction with Sullivan & Cromwell LLP acting as its legal advisor.
