The Middletown Press (Middletown, CT)
Pfizer to acquire Biohaven for $11.6B
Officials with pharmaceutical giant Pfizer announced Tuesday the company plans to acquire New Haven-based Biohaven Pharmaceuticals in an $11.6 billion deal.
The announcement comes six months after Pfizer began a collaboration to commercialize Biohaven’s migraine drug Nurtec outside of the United States. Pfizer invested $350 million to acquire 2.6 percent of Biohaven’s common stock at $173 per share as part of that collaboration.
Pfizer’s acquisition of Biohaven involves the purchase of the remaining outstanding shares in the New Haven-based company at a price of $148.50. The deal has already been approved by the boards of directors at both companies, but still must be approved by shareholders and regulators.
The deal is expected to close early next year. After the acquisition is finalized, Biohaven will continue to operate under its own name.
Vlad Coric, Biohaven’s chairman and chief executive officer, said Pfizer’s capabilities “will accelerate our mission to deliver our migraine medicines to even more patients.”
“We believe this transaction represents significant future value creation for patients and our collective shareholders,” Coric said in a statement.
During a conference call with analysts Tuesday, Coric called Pfizer “a global drug development powerhouse.”
Angela Hwang, president of Pfizer’s Biopharmaceuticals Group, said the company is preparing to launch Nurtec in 70 countries worldwide. Pfizer’s sales force has experience promoting such blockbuster drugs as cholesterol treatment Lipitor, stroke and blood clot medication Eliquis and Viagra.
Nick Lagunowich, global president of Pfizer Internal Medicine, said Nurtec and Biohaven’s pipeline of other drug candidates “offers hope for patients suffering from migraines worldwide.”
“We believe Pfizer is uniquely positioned to help the portfolio reach its full potential given our leading scale and capabilities,” Lagunowich said in a statement.
In addition to Nurtec, Biohaven is developing Zavegepant, a nasal spray for the treatment of migraines. The company expects to file a new drug application for zavegepant with the U.S. Food and Drug Administration later this year.
Biohaven is also developing a soft oral gel for chronic migraine prevention.
Aamir Malik, Pfizer’s chief innovation officer, said migraines affect 1 billion people worldwide, including 40 million in the United States alone.
“Migraines are one of the world’s most significant diseases,” Malik said.
Coric said Nurtec has achieved more than 2 million prescriptions since it received FDA approval in February 2020.
Biohaven stock, which trades under the ticker symbol BHVN on the Nasdaq exchange, had seen its share price tumble over the past several weeks. The stock, which had been trading at levels above $100 since last June, fell as low as $83.64 at the close of trading on Monday.
Biohaven stock closed at $140 per share on Tuesday, up $56.86 or more than 68 percent.