Pfizer Inc announced on Tuesday that it would acquire Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN) for approximately $11.6 billion in cash.
At the time of writing, BHVN stock was trading at $141.50, representing a 70% gain.
Pfizer will pay $148.50 per share for all of New Haven’s outstanding stock, representing a 78.6% premium over Biohaven’s previous closing price.
Pfizer and other Biohaven shareholders will receive 0.5 shares of New Biohaven, a new company that will retain some compounds in development.
In November, Pfizer paid up to $1.24 billion for the overseas marketing rights to two migraine drugs from Biohaven. Pfizer spent $350 million at the time to acquire 2.6% of Biohaven’s common stock for $173 per share.
According to the statement, the drug giant is paying a significant premium for Biohaven, roughly one-third more than the stock’s weighted average selling price of $111.70 over the last three months.
On Tuesday, Biohaven also released its FY22 Q1 results. It reported a $2.97 per share loss in the first quarter of March 2022 on revenue of $318.9 million. The consensus estimate was a loss of $2.52 per share on $187.1 million in revenue. Revenue increased by 627.6% year on year.
Financial Highlights
- Record reported revenues of $319 million.
- NURTEC® ODT (rimegepant) TRx volumes grew 8% versus the fourth quarter, and net product revenue was $124 million for the first quarter of 2022.
- Net product sales guidance of $825 – $900 million provided for 2022
- Received EU approval from the European Commission (“EC”) for rimegepant 75 mg for the acute and preventive treatment of migraine; EC marketing authorization valid in all 27 member countries of the European Union.
- Expanded payer coverage for NURTEC ODT, extending coverage to 96 percent of total commercial lives and approximately 263 million people in all payer channels.
- Featured 13 abstracts, including two oral presentations, at the 2022 American Academy of Neurology Annual Meeting, notably highlighting NURTEC ODT’s clinical utility as demonstrated by a reduction in opioid prescriptions filled and medication overuse headache following treatment.
- U.S. Food and Drug Administration approved the NURTEC ODT label amendment to include clinical lactation data.
- Initiated enrollment in two new Phase 2/3 clinical trials assessing the safety and efficacy of NURTEC ODT 75 mg in patients with sinusitis and temporomandibular disorder.
Company Profile
Biohaven is a commercial-stage biopharmaceutical company with a pipeline of innovative, best-in-class therapies for patients suffering from debilitating neurological and neuropsychiatric diseases, including rare disorders.
